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SELLING  LATIN 
AMERICA 

A  Problem  in  International  Salesmanship 

WHAT  TO   SELL   AND 
HOW  TO  SELL  IT 

BY 

WILLIAM  E.  AUGHINBAUGH,  M.D.,  LL.B.,  LL.M. 


I  > 


Illustrated  from  Photographs 


»  * 


BOSTON 
SMALL,  MAYNARD  &  COMPANY 

PUBLISHERS 


n 


Copyright,  igij 

By  Small,  Maynard  and  Company 

(incorporated) 


S,  J.  Paekhill  <fc  Co.,  Boston,  U.S.A. 


FOREWORD 

I  made  the  acquaintance  of  Doctor  W.  E. 
Aughinbaugh  about  eight  years  ago,  when  I 
was  in  charge  of  the  advertising  department 
of   a   large   concern   doing   an   international 
business.     The  doctor  came  with  us  to  look 
aftei  the  export  trade,  especially  in  the  West 
Indies  and  South  America.     My  work  nat- 
urally brought  me  into  close  association  with 
him,  and  I  soon  began  to  appreciate  his  un- 
usual ability  in  many  directions  and  his  spe- 
cial   fitness    for    the    position    he    occupied. 
There  seemed  to  be  no  phase  of  merchandis- 
ing in  far-of¥  markets  with  which  he  was  not 
fully  conversant;  nor  did  this  knowledge  re- 
late solely  to  Latin  America.     He  had  pre- 
viously travelled  the  distant  markets  of  the 
Orient  in  the  interests  of  an  American  house 
whose   products    he    successfully   introduced 
there  and  to  him  the  Far  East  was  an  open 

book. 

He  has  been  in  Egypt  eight  times  on  busi- 

1 


3068018 


ii  FOREWORD 

ness  missions.  He  has  travelled  Somaliland, 
Palestine,  Asia  Minor,  Morocco,  Tunis,  Trip- 
oli, Algiers,  South  Africa,  Persia,  Arabia, 
Afghanistan,  Cashmir,  Beluchistan,  India,  As- 
sam, Burma,  Siam,  China,  Cochin-China, 
Japan,  the  East  Indies  and  all  over  Europe 
with  the  single  exception  of  Russia.  The 
doctor  also  spent  two  years  of  his  restless  life 
in  the  Far  North  where  a  business  mission  of 
importance  took  him  into  Iceland,  Greenland, 
Labrador,  Newfoundland,  Cape  Breton  Is- 
land, Prince  Edward  Island  and  the  Hud- 
son's Bay  Country.  As  to  the  West  Indies 
and  South  America,  he  has  been  not  only  to 
them,  but  through  them  many  times  and  in 
every  habitable  spot  where  business  was  to  be 
done.  Some  idea  may  be  gained  as  to  the 
frequency  of  his  visits  to  South  America  by 
mentioning  the  fact  that  he  has  made  thirty- 
six  trips  across  the  Equator. 

Dr.  Aughinbaugh  talks  about  the  markets 
of  foreign  countries  with  the  authority  of  long 
experience  for  he  has  been  engaged  in  these 
special  fields  for  more  than  twenty  years;  yet 


FOREWORD  iii 

he  is  still  a  young  man  with  a  modern  view- 
point. He  speaks  the  languages  of  many 
countries  and  speaks  them  well.  His  infor- 
mation is  first-hand,  reliable  data  gathered  on 
the  ground  where  he  lived  and  worked,  whose 
people  he  knew  and  could  speak  to  in  their 
own  tongue,  not  the  unreliable,  superficial  va- 
porings  of  some  dilettante  globe-trotter  who 
has  given  the  high-spots  of  civilization  the 
^'once  over"  and  therefore  considers  himself  a 
competent  authority  to  write  upon  the  com- 
merce, customs  and  manners  of  foreign  coun- 
tries the  very  languages  of  which  he  does  not 
understand  without  the  aid  of  an  interpreter, 
or  who  could  not  find  his  way  back  to  the 
railway  station  or  dock  without  the  assistance 
of  a  guide. 

Doctor  Aughinbaugh  is  no  such  lightweight. 
He  has  not  written  this  book  because  he  be- 
lieves he  knows  it  all.  Left  to  himself  he 
would  never  have  written  it.  It  was  only 
after  repeated  urgings  on  the  part  of  some  of 
his  friends  who  appreciated  his  ability  to 
write  an  unusual  book,  that  he  consented  to 


iv  FOREWORD 

undertake  the  work,  and  then  he  did  so  under 
protest. 

It  may  be  asked  with  pertinence  how  a  man 
could  travel  in  the  interest  of  one  line  and 
yet  be  in  possession  of  so  much  information 
relating  to  every  other  line;  or  how  one  could 
master  the  intricacies  of  foreign  banking  and 
credits  and  still  attend  to  his  business.  The 
answer  to  all  of  this  is  that  no  man  can  suc- 
cessfully negotiate  foreign  markets  unless  he 
is  more  than  a  mere  ''order  taker."  As  to  the 
doctor's  ability  to  measure  the  requirements 
of  a  market  all  the  way  from  cereals  to  con- 
crete, that  may  be  accounted  for  by  the  fact 
that  he  is  both  a  physician  and  a  graduate  of 
the  law,  and  while  he  never  practised  at  the 
bar  to  any  great  extent  he  did  have  consid- 
erable experience  in  medicine,  a  profession 
which  developed  a  naturally  analytical  mind, 
so  that  he  looked  at  things  with  the  eyes  of  a 
student  and  from  the  viewpoint  of  the  trained 
diagnostician.  For  six  years  he  followed 
medicine  in  Latin  America,  finally  giving  it 
up  to  accept  an  offer  from  a  large  company 


FOREWORD  V 

who  compensated  him  accordingly.  His  ex- 
perience in  that  line  alone  took  him  all  over 
the  world  and  the  ramifications  of  the  business 
brought  him  into  close  contact  with  the  mar- 
keting of  nearly  every  other  commodity.  But 
even  had  this  not  been  so,  he  is  the  sort  of 
man  who  would  have  sensed  a  business  oppor- 
tunity because  he  is  naturally  a  keen  observer 
and  everything  interests  him.  He  is  the  type 
of  man  who  absorbs  information;  he  does  not 
have  to  be  shown — he  sees. 

Here,  then,  is  a  man  possessed  of  a  fund  of 
particularly  desirable  information — especially 
valuable  to-day  when  Europe  is  war-mad  and, 
in  her  sanguinary  frenzy,  has  left  open  the 
door  of  opportunity  to  peaceful  Uncle  Sam. 
Why  not  put  this  information  in  concrete 
form  for  the  benefit  of  American  commerce? 

These  considerations  were  put  up  to  the 
author  by  some  of  his  friends  who  knew  him 
to  be  a  keen,  accurate,  analytical  observer,  a 
writer  and  a  raconteur  of  more  than  ordinary 
ability,  and  this  book  was  the  result. 

Probably  never— let  us  fervently  hope  never 


vi  FOREWORD 

for  the  same  reason — will  the  United  States 
have  another  opportunity  such  as  the  present 
one,  to  enter  those  fruitful  fields  to  the  south, 
where  Europe  in  general,  and  Germany  in  par- 
ticular, has  reaped  a  golden  harvest  for  so 
many  years. 

A  careful  reading  of  this  book — not  a  diffi- 
cult matter,  for  unlike  most  works  on  com- 
merce it  is  full  of  lively  interest — will  be  prof- 
itable to  every  business  man  interested  in  the 
subject  of  Latin  America.  It  will  be  valuable 
to  those  who  are  equipped  or  willing  to  pre- 
pare themselves  to  cope  with  conditions  as 
they  really  are,  and  just  as  valuable  to  those 
who  are  not,  for  it  may  save  them  from  the 
costly  mistakes  of  experimentation  in  foreign 
fields. 

Maurice  Switzer. 

New  York,  March  20,  1915. 


CONTENTS 

CHAPTER  >                PAGE 

I  General  Remarks  on  Foreign  Trade  ....  i 

II    Brazil 13 

III  Argentine 31 

IV  Uruguay        49 

V    Paraguay 57 

VI     Chile        67 

VII    Bolivia 79 

VIII    Peru 91 

IX    Ecuador 106 

X    Colombia 114 

XI    Venezuela 126 

XII    Central  America 138 

XIII  Mexico 156 

XIV  Cuba 168 

XV     Santo   Domingo 176 

XVI    Haiti 182 

XVII    Porto   Rico 186 

XVIII  The   Guianas:  British,   Dutch   and   French    .  191 

XIX  European  Possessions  in  the  West  Indies   .     .  199 

XX  Foreign  Trade  with  Latin  America  and  How 

It    Developed 213 

XXI    Methods  of  Doing  Business 224 


CONTENTS 

CHAPTER  PAGE 

XXII    The  Salesman  and  the  Customer 243 

XXIII  Custom-Houses   and   Tariffs 266 

XXIV  Trade    Marks -    .     .     .  276 

XXV    Finance  and  Credits 288 

XXVI    Packing  and   Shipping 311 

XXVII    Advertising 331 

XXVIII    Reciprocity 345 

XXIX    Health  Precautions 368 

Appendix 375 

Index 397 


ILLUSTRATIONS 


The  harbor  of  Rio  de  Janiero    . 
AvENiDA  Rio   Branco  and   Opera  House 

Rio  de  Janiero 

Taking  produce  to  the  station,   Argen 

tine 

Grain  elevators,  Buenos  Aires  . 
Interior    of    a    gentlemen's    hat    store 
Asuncion,  Paraguay  .... 

A  COUNTRY  store  IN  COLOMBIA 

Valparaiso 

Lake  Titicaca  at  Puno,  Peru       .  ,     . 

Oroya  Line,  Peru 

a  comparison  of  climates 

Drying  hides  and  skins  in  Argentine 

AvENiDA  Central,   Rio  de  Janiero     . 

Calle  Rivadavia,  Buenos  Aires  . 

A    Pack-train    on    the    Andes    Trail    in 

Colombia 

Llamas  in  Cerro  de  Pasco,  Peru 
Chilean  infantry.     See  page  220  . 
Advertisement  of  Cognac  Bisquit 
South  American   appreciation  of   adver 

tisements  **made  in  U.  S.  a."     . 
The  Plaza  Hotel  in  Buenos  Aires  . 


PAGE 
14 

28 

44 

60 

60 

68 

Z6 

98 

224 

240 

262 

288 

312 
316 

340 
340 

342 
368 


MAPS 

South  America Frontispiece 

Central  America 13^ 

Mexico iS^ 

The  West  Indies 168 


SELLING  LATIN  AMERICA 


>         4      W     •  f 

>'       1      9        •       • 


•  :  .V 


SELLING  LATIN  AMERICA 


GENERAL  REMARKS  ON   FOREIGN  TRADE 

War  completely  changes  commercial  cur- 
rents. The  victor  takes  the  established  and 
profitable  trade,  leaving  to  the  vanquished  the 
harder  lines  of  business  and  the  development 
of  new  fields.  This  is  as  true  of  the  first  war 
recorded  by  history  as  it  will  be  of  the  last. 

As  an  illustration  of  the  veracity  of  this 
statement  it  is  only  necessary  to  recall  our  war 
with  Spain.  Prior  to  her  defeat,  Spain  con- 
trolled the  bulk  of  the  banking  and  commerce 
of  the  Philippines,  Cuba  and  Porto  Rico. 
To  her  possessions  she  exported  wines,  foods, 
manufactured  articles,  textiles,  drugs,  per- 
fumes, canned  goods,  shoes  and  hats,  receiv- 
ing in  exchange  their  sugar,  tobacco  and  cof- 
fee. 


2       SELLING  LATIN  AMERICA 

To-day  the  United  States  consumes  all  of 
these  exports,  while  the  requirements  of  the 
three  countries  are  supplied  by  America, 
which  also  does  their  financing  through  banks 
organized  in  these  possessions,  and  capitalized 
with  American  money.  To  be  more  specific 
and  by  way  of  a  concrete  example  let  me  men- 
tion Cuba,  which  in  191 3  exported  $165,000,- 
000  worth  of  products,  all  but  15  per  cent, 
of  which  was  taken  by  the  United  States,  the 
amount  shipped  to  Spain  being  about  four- 
tenths  of  one  per  cent.  During  the  same 
period  of  time  she  imported  goods  to  the  value 
of  $132,000,000  of  which  we  supplied  65  per 
cent,  against  Spain's  8  per  cent.  Since  1902, 
Cuba's  foreign  commerce  has  increased  250 
per  cent.,  due  absolutely  to  the  part  played  by 
the  United  States  in  the  Spanish-American 
war.  The  same  condition  of  affairs  in  ex- 
ports, imports  and  other  lines  is  equally  true, 
although  not  on  such  a  large  scale,  of  course, 
of  the  Philippines  and  Porto  Rico. 

The  Napoleonic  wars  gave  to  England  the 
strong  position  she  now  occupies  in  the  finan- 


FOREIGN  TRADE  3 

cial  and  commercial  world.  Her  bankers 
and  shippers,  merchants  and  manufacturers, 
with  one  accord  grasped  the  opportunity  that 
presented  itself  then  and  have  held  the  su- 
premacy thus  gained  for  more  than  a  century. 

Perhaps  it  was  the  recollection  of  what 
gave  Great  Britain  her  start  in  this  field 
which  led  the  London  Spectator  to  remark,  at 
the  outbreak  of  war  in  1914: 

"The  present  war  gives  the  United  King- 
dom an  excellent  opportunity  to  capture  the 
export  and  import  trade  of  Germany  and  Aus- 
tria-Hungary." 

If  England,  engaged  in  the  most  desperate 
and  expensive  war  she  or  the  civilized  world 
ever  has  known,  with  her  enormous  resources 
taxed  to  their  utmost,  saw  an  ''opportunity" 
for  trade  expansion,  how  much  greater  is  the 
chance  in  this  line  for  an  absolutely  neutral 
power,  populated  with  keen  business  men,  and 
provided  by  Nature  with  unparalleled  produc- 
tive possibilities; 

The  war  in  Europe  developed  the  most  re- 
markable business   situation   for  the   United 


4       SELLING  LATIN  AMERICA 

States  ever  presented  to  any  nation.  The  vir- 
tual closing  of  all  the  doors  of  the  export  and 
import  trade  of  the  Old  World  and  the  almost 
total  dependence  heretofore  of  the  Far  East 
and  Latin  America,  especially,  on  Europe  for 
finance  and  trade  connections  made  the  w^ar 
truly  the  psychological  moment  for  us,  as  a 
nation,  not  only  to  overcome  the  lead  of  the 
European  commercial  world,  but  also  to  ce- 
ment by  other  than  ties  of  business  the  bonds 
of  friendship  due  us  not  only  on  account  of 
our  ideal  geographical  position,  but  also  be- 
cause of  our  similar  republican  form  of  gov- 
ernment. 

By  embracing  this  extraordinary  oppor- 
tunity— apparently  almost  created  for  our  ex- 
press benefit,  we  being  the  only  people  able 
to  profit  by  it — we  can  make  the  nations  which 
formerly  depended  on  Europe  for  support  in 
their  trade  ventures  our  business  allies,  our  sin- 
cere friends  and  well-wishers,  and  at  the  same 
time  bring  about  a  new  trade  alignment  so  that 
all  America  will  reap  the  benefit. 

Let  us  briefly  consider  some  of  the  enormous 


FOREIGN  TRADE  5 

possibilities  of  foreign  trade  in  Latin  Ameri- 
can countries. 

Latin  America — that  is,  the  countries  of 
Central  and  South  America,  together  with 
Mexico,  Cuba,  Santo  Domingo  and  Porto 
Rico — comprises  twenty  distinct  states,  with  a 
total  population  of  about  65,000,000,  a  large 
portion  of  whom  are  Indians  and  half-breeds 
— a  fact  which  we  should  not  lose  sight  of  in 
view  of  the  tremendous  imports. 

Statistics  recently  compiled  by  the  Pan- 
American  Bureau  show  that  these  countries, 
in  1913,  conducted  a  foreign  commerce  valued 
at  $2,870,178,575.  Of  this  the  imports  were 
$1,304,261,763,  and  the  exports,  $1,565,916,- 
812,  thus  giving  Latin  America  a  favorable 
balance  of  $261,655,049. 

Ten  of  these  countries  alone  purchased 
goods  to  the  amount  of  $961,000,000.  Of  this 
sum  Great  Britain  supplied  $273,000,000; 
Germany,  $180,000,000;  France,  $84,000,000; 
Italy,  $54,000,000;  Belgium,  $47,000,000,  and 
Austria-Hungary,  $8,000,000.  The  United 
States  exported  to  these  ten  countries  last  year 


6       SELLING  LATIN  AMERICA 

$160,000,000  and  imported  from  them  $250,- 
000,000.  Brazil,  in  19 13,  imported  $15,000,- 
000  in  textiles  alone,  of  which  amount  the 
United  States  supplied  only  $500,000.  In  the 
same  length  of  time  Argentine  imported  goods 
to  the  amount  of  $468,999,996,  of  which 
amount  less  than  8  per  cent,  was  supplied  by 
this  country.  The  United  Kingdom  exported 
to  all  of  Latin  America  $23,500,000  worth  of 
coal  in  1913,  the  United  States,  during  the 
same  period  of  time,  $750,000. 

Practically  the  same  story  in  all  lines  of  ex- 
ports could  be  told  of  these  countries,  demon- 
strating that  individually  in  nearly  all  cases 
the  United  States  is  the  largest  consumer  of 
their  raw  or  finished  products  and  the  smallest 
exporter  of  the  goods  they  most  require. 

Fearful  that  some  one  may  infer  after  look- 
ing at  these  figures  that  European  countries 
have  preferential  duties  with  Latin  America, 
let  me  state  most  emphatically  that  this  is  not 
the  case.  With  one  single  exception  no  favor- 
itism is  shown  any  of  the  trading  nations,  in 
the  matter  of  import  fees,  and  in  that  instance 


FOREIGN  TRADE  7 

we  benefit  by  it.  Brazil  makes  a  decided 
preferential  tariff  in  favor  of  some  of  our 
goods  in  view  of  the  fact  that  we  are  the  largest 
consumers  of  her  chief  product — coffee. 

Everyone  of  these  countries  is  in  process  of 
development  and  expansion.     They  have  in 
profusion,   the   things   the  busy  world  most 
needs.     Their  mines  are  the  richest  known 
to  man.     Some  have  been  worked  for  thou- 
sands of  years  and  are  still  productive.     Their 
broad  fields  are  destined  to  make  them  the 
granaries  of  the  world.     Their  miles  of  pas- 
ture lands  and  their  extensive  acreage  mean 
that  Europe  and  the  United  States  will  depend 
upon  them  for  meat.     Their  vast  virgin  for- 
ests are  capable  of  supplying  humanity  with 
cabinet  and  other  woods  for  several  centuries. 
Their  trade  and  imports  must  therefore  in- 
crease.    It  is  apparent  that  they  cannot  di- 
minish.    We  cannot  as  a  nation  afford  to  re- 
main indifferent  any  longer  to  their  possibili- 
ties and  opportunities. 

Very  naturally  there  have  been  many  ob- 
jections on  the  part  of  our  business  men  to  go- 


8       SELLING  LATIN  AMERICA 

ing  after  this  trade  which  all  of  Europe 
strained  every  resource  to  acquire  and  control. 
It  was  urged  that  we  had  all  the  business  we 
required;  that  we  lacked  foreign  banking 
facilities ;  that  our  merchant  marine  was  small 
and  inefficient;  that  to  go  abroad  for  trade 
meant  learning  new  languages,  acquiring  new 
customs,  opening  new  accounts,  taking  more 
risks.  These  conditions  were  equally  true 
when  the  European  merchant  decided  to  enter 
this  field.  He  met  and  overcame  all  these 
difficulties  under  far  more  adverse  circum- 
stances than  exist  for  us,  to-day.  His  expe- 
rience in  this  territory  has  charted  the  path 
for  us  to  follow,  and  if  we  take  advantage  of 
the  beacons  he  has  erected  we  shall  be  saved 
from  many  pitfalls. 

Latin  America  with  the  things  the  world 
most  requires — wheat,  meat,  wool,  coffee, 
sugar,  nitrates,  minerals,  woods — can  never 
collapse  completely  through  any  financial 
crisis.  Furthermore  its  power  of  reviving 
quickly  from  any  unfavorable  panic  is  truly 
phenomenal.    I  recall  Venezuela,  the  year  she 


FOREIGN  TRADE  9 

terminated    her    bloodiest    revolution    under 
Castro,  harvesting  and  exporting  a  bumper 
crop  of  coffee,  which  immediately  cleared  up 
her  monetary  depression,  and  this  rapid  con- 
valescent condition  has  been  duplicated  time 
and  time  again  after  every  period  of  internal 
trouble  experienced  by  all  of  these  countries. 
Nature  has  been  bounteous  in  her  gifts  to 
these  favored  lands  of  the  sun.     If  in  a  given 
locality  the  soil  is  not  fertile,  it  is  rich  in  min- 
eral wealth,  or  covered  with  luxuriant  for- 
ests.    Throughout  Latin  America  large  and 
small  rivers  afford  easy  and  cheap  means  of 
transportation.     Drought   or   excessive    rain- 
falls   are   comparatively   unknown.     Despite 
the  fact  that  a  majority  of  the  population  lives 
primitively,  epidemics  of  a  severe  nature  have 
been  few  and  far  between.     Revolutions,  for- 
merly the  blight  on  these  lands,  are  becoming 
rare   and   in   most  of   these   countries   there 
have  been  no  such  uprisings  or  demonstrations 
of  this  character  for  more  than  twenty  years. 
The  opportunities   for  successful  business 
in  almost  any  chosen  line  in  Latin  America  are 


lo     SELLING  LATIN  AMERICA 

unlimited,  provided  one  uses  ordinary  judg- 
ment and  simple  tact  in  the  undertaking. 
Furthermore  less  capital  is  required  to  start 
an  enterprise  than  in  lands  where  competition 
is  keener,  and  less  energy  necessary  to  insure 
success.  The  truth  of  these  statements  is 
demonstrated  most  completely  by  the  fact  that 
millions  of  Europeans — many  of  them  unedu- 
cated and  possessed  of  no  great  amount  of 
ability  or  money — have  settled  throughout 
these  lands  and  established  themselves  in 
prosperous  occupations. 

The  greatest  possibilities  exist  along  the 
lines  of  general  development.  All  these  coun- 
tries are  new;  most  of  them  practically  unex- 
plored— many  of  them  not  even  having  their 
boundary  lines  definitely  established.  Think 
of  what  must  be  the  opportunities  in  Brazil — 
a  country  larger  in  area  than  the  United 
States,  and  supporting  only  20,000,000  people 
— or  of  Argentine,  spreading  over  almost  as 
much  territory  as  Europe,  excepting  Russia 
and  Austria-Hungary,  with  a  population 
slightly  more  than  7,000,000.     It  is  to  these 


FOREIGN  TRADE  n. 

countries  that  overcrowded  Europe  must  come 
for  elbow  room — for  a  glimpse  of  the  sun. 

Once  a  business  or  a  plant  is  established  in 
Latin  America  one  need  not  have  the  intense 
fear  of  bitter  local  competition.     These  peo- 
ple have  never  been  manufacturing  or  creative 
in  their  desires,  and  the  chances  are,  if  we  are 
to  predicate  their  future  from  their  past,  that 
they  never  will  become  competitors  in  any  of 
these  fields.     Climatic  conditions,  racial  and 
inherited  traits  have  made  them  follow  the 
lines  of  least  resistance  and  they  have  become 
cattle  raisers  and  large  farmers,  while  com- 
paratively few  have  entered  commercial  life. 
This  being  true  it  follows  that  these  countries 
are  ideal  for  those  desirous  of  leading  an  active 
commercial  or  manufacturing  career. 

All  of  Latin  America  is  in  the  process  of 
awakening.  They  are  building  railways, 
making  vast  municipal  and  national  improve- 
ments, exploiting  their  natural  resources, 
modernizing  their  agricultural  methods.  The 
advent  of  the  foreigner  has  been  potent  in  rais- 
ing their  standard  of  living.     If  these  people 


12     SELLING  LATIN  AMERICA 

were  to  raise  their  standard  of  living  to  that 
of  the  United  States  at  the  present  time,  it 
would  be  the  equivalent,  so  far  as  market  possi- 
bilities are  concerned,  to  creating  three  new 
Americas.  Each  day  sees  some  progress  in 
this  direction,  and  with  it  a  desire  for  more  of 
the  comforts  of  modern  civilization — for  more 
of  the  things  which  go  to  make  up  the  full  and 
complete  life.  This  means  employment  for 
their  people — civic  progress — and  prosperity. 
Their  markets  are  easily  reached,  the 
merchants  willing  to  buy,  our  producers  cap- 
able of  providing  the  things  they  require. 
Their  first  orders  may  be  small,  but  they  be- 
come enormous  buyers  when  they  find  the 
article  adapted  for  their  needs.  The  Euro- 
pean marts  which  might  have  supplied  the 
things  these  nations  require  in  their  growth 
cannot  do  so  for  a  long  time  to  come,  thus  giv- 
ing us  an  ideal  opportunity  to  capture  these 
markets  and  at  the  same  time  introduce  Ameri- 
can methods  throughout  the  length  and 
breadth  of  the  land. 


II 

BRAZIL 


The    Republic    of    the    United    States    of 
Brazil,  including  the  Acre  Territory,  is  the 
largest  of  the  South  American  countries  and 
if  we  include  Alaska  and  our  island  posses- 
sions is  really  larger  in  area  than  the  United 
States  of  America,  by  about  200,000  square 
miles.     It  is  fifteen  times  larger  than  Ger- 
many and  sixteen  times  larger  than  France. 
With  the  exception  of  Ecuador  and  Chile  its 
frontier    touches    every    country    of    South 
America,  being  bounded  on  the  north  by  Brit- 
ish, French  and  Dutch  Guiana  and  Venezuela ; 
on  the  west  by  Colombia,  Peru,  Bolivia,  Para- 
guay and  Argentine ;  on  the  south  by  Uruguay, 
while  the  Atlantic  Ocean  forms  its  eastern  and 
a  portion  of  its  northern  limitation.     Its  most 
eastern  point  is  but  three  days'  sail  from  the 
western   coast   of   Africa.     It   is   the   fourth 


w 

13 


14      SELLING  LATIN  AMERICA 

largest  country  in  the  world,  and  is  widest  be- 
tween the  Equator  and  the  Tropic  of  Capri- 
corn, covering  an  area  of  3,292,000  square 
miles. 

The  population  has  been  variously  estimated 
at  from  20,000,000  to  24,000,000,  of  whom  less 
than  1,000,000  are  aborigines,  thus  giving  it 
about  one-fifth  of  the  population  per  square 
mile  of  the  population  of  the  United  States  of 
America.  Its  inhabitants  are  white,  black, 
mulattoes,  Indians  and  mixed  breeds,  a  heavy 
percentage  being  descendants  from  the  slaves 
imported  originally  from  Africa,  slavery  in 
Brazil  having  been  abolished  in  1888. 

The  language  of  Brazil  is  Portuguese  ex- 
cept among  the  Indian  tribes,  each  one  of 
which  has  its  own  dialect.  These  Indians  are 
to  be  found  in  the  interior  and  the  remote  dis- 
tricts, and  are  a  negligible  quantity  as  far  as 
trade  is  concerned,  living  primitive  lives  and 
having  few  wants  that  the  rich  country  and 
rivers  cannot  supply. 

Brazil  was  discovered  April  22,  1500,  by 
Pedro  Alvarez  Cabral,  a  Portuguese  explorer, 


'3       J  1>!> 


o 
Si 

*s 


O 


o 
a 


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H 


t 


BRAZIL  15 

but  no  definite  attempt  was  made  to  settle  it, 
or  assume  governing  power  by  the  Portuguese 
until  1549,  fifty-seven  years  after  Columbus 
had  been  to  America,  when  Portugal  awoke  to 
the  great  possibilities  of  the  country  and  dis- 
patched her  first  Governor  General  in  the 
personage  of  Thome  de  Souza. 

During  the  century  following  the  arrival 
of  its  first  constituted  governor,  Brazil  became 
the  scene  of  numerous  attacks  and  invasions  on 
the  part  of  the  French,  Dutch  and  British, 
each  one  desirous  of  acquiring  portions  of  its 
territory,  having  been  attracted  by  the  current 
stories  of  its  great  wealth  and  latent  resources. 
For  a  time  both  France  and  Holland  estab- 
lished themselves  in  a  small  way  within  its 
boundary,  but  ultimately  abandoned  their  out- 
posts. 

From  1640  to  1808  Brazil  was  governed  by 
a  Viceroy,  who  resided  in  Rio  de  Janeiro. 
The  victorious  armies  of  Napoleon  and  their 
progress  across  the  Spanish  Peninsula  ulti- 
mately caused  King  John  to  abandon  his  capi- 
tal in  Portugal  and  flee  to  Brazil,  where  he 


i6     SELLING  LATIN  AMERICA 

established   himself    in    Rio    de  Janeiro    (in 
1808),  and  ruled  Portugal  from  this  one  of 
his  possessions.     This  is  the  only  instance  in 
history  of  any  portion  of  Europe  ever  being 
ruled    from    the    western    continent.     When 
peace  came  to  Europe,  King  John  returned, 
leaving  Brazil  under  the  regency  of  his  eldest 
son   Dom   Pedro,  who   in   1822,   proclaimed 
Brazil  independent  of  Portugal,  and  estab- 
lished himself  in  power  as  Emperor,  the  first 
and  only  instance  of  such  a  form  of  govern- 
ment in   South  America.     Dom   Pedro  was 
forced  to  abdicate  in  1831  in  favor  of  his  son 
Dom  Pedro  II,  who  after  reigning  through  a 
regency  assumed  the  throne  on  becoming  of 
age  in  1840.     It  is  unnecessary  to  detail  the 
causes  that  led  to  the  bloodless  revolution  of 
November  15,   1889,  which  ended  his  reign 
and  by  means  of  which  Brazil  proclaimed  her- 
self a  republic,  adopting  a  constitution  pat- 
terned after  our  own  and  a  government  com- 
prising a  President,  with  legislative  powers 
vested  in  a  Congress  composed  of  two  bodies, 
a  Senate  and  a  Chamber  of  Deputies. 


BRAZIL  17 

Brazil  is  so  immense,  situated  between  the 
fifth  degree  north  and  the  thirty-third  degree 
south,  and  its  topography  so  varied  that  it  has 
all  kinds  of  climates  excepting  extreme  cold. 
Lying  in  the  temperate  and  tropical  zones  one 
would  incline  to  the  belief  that  it  would  be 
more  or  less  warm,  but  its  many  rivers  and 
mountains,  its  high  table-lands  and  plateaus 
exert  a  beneficial  influence  in  this  regard  and 
materially  modify  what  otherwise  would  be 
extreme  degrees  of  heat. 

More  than  half  of  Brazil  is  an  elevated 
plateau,  varying  from  2000  to  3000  feet  in 
altitude.  It  has  four  distinct  mountain 
ranges,  which  deflect  its  rains  and  form  vast 
watersheds  for  irrigating  the  fertile  lands  at 
their  base.  The  eastern  and  central  portions 
are  elevated  while  the  chief  characteristics  of 
the  north  and  west  are  its  fertile  plains  and 
valleys. 

The  coast  of  Brazil  straggles  along  for  over 
5000  miles  and  is  provided  with  numerous 
natural  harbors,  where  the  earlier  settlers  es- 
tablished cities  which  have  grown  and  pros- 


i8      SELLING  LATIN  AMERICA 

pered,  the  principal  ones  from  the  north  to 
the  south  being  Belem,  or  Para,  San  Luiz, 
Parnahyba,  Fortaleza  or  Ceara,  Natal,  Para- 
hyba,  Recife  or  Pernambuco,  Maceio,  Ara- 
caju,  Sao  Salvador  or  Bahia,  Victoria,  Rio  de 
Janeiro,  Santos,  Paranagua,  Sao  Francisco, 
Rio  Grande  do  Sul  and  Porto  Allegre.  As  a 
rule  each  of  these  ports  is  the  terminus  for  a 
railway  system  penetrating  the  interior,  de- 
signed solely  for  the  purpose  of  bringing  the 
products  to  market  and  carrying  supplies  and 
necessities  to  the  part  of  the  country  dependent 
upon  it.  There  are  practically  no  trunk  or 
interstate  lines,  but  plans  are  now  formulated 
to  overcome  this  condition. 

Manaos  is  an  inland  port  of  Brazil,  famous 
as  a  trading  depot  and  one  of  the  centers  of 
the  rubber  industry.  It  is  located  on  the  Rio 
Negro,  at  its  mouth  where  it  empties  into  the 
great  Amazon,  one  thousand  miles  from  the 
Atlantic  Ocean,  and  maintains  direct  steam- 
ship connection  with  the  United  States  and 
Europe  as  well  as  the  other  ports  of  Brazil. 

Perhaps  no  other  country  in  the  world  is  so 


BRAZIL  19 

well  provided  with  rivers   as   Brazil.     The 
mighty,  muddy  Amazon,  the  greatest  river  in 
existence,    practically    traverses    the    country 
from  east  to  west  in  its  3850  miles  journey  to 
the  sea.     Some  idea  of  its  strength  and  volume 
may  be  gained  when  I  state  that  its  yellow 
waters  color  the  Atlantic  for  over  100  miles 
beyond  its  mouth,  and  freshen  the  salt  water 
for  a  distance  of  180  miles.     Emptying  into 
this  Queen  of  Rivers  are  more  than  200  tribu- 
taries, over  100  of  which  are  navigable,  the 
famous  Rio  Roosevelt  or  River  of  Doubt  form- 
ing one  of  the  number.     There  are  over  10,- 
000  miles  of  navigable  waterways  for  ocean 
vessels  and  20,000  miles  for  light-draft  boats. 
Brazil  is  a  pastoral  country  and  the  indica- 
tions are  that  it  will  always  remain  so.     Its 
vast  savannahs  and  fields  have  formed  ideal 
locations  for  raising  cattle  and  sugar,  while 
its  mountain  sides  and  plateaus  are  unparal- 
leled for  the  growth  of  its  staple  product- 
coffee,  the  average  yearly  crop  of  which  is  the 
enormous    amount   of    1,596,000,000   pounds. 
Rice,  cotton,  sugar,  tobacco,  matte  (a  species 


20     SELLING  LATIN  AMERICA 

of  tea  for  native  use),  mandioca  (a  starchy 
tuber  from  which  a  bread  is  made  much  liked 
by  the  native)  and  cacao  are  also  extensively 
grown.  India  rubber,  the  use  of  which  was 
early  known  to  the  Indians  of  Brazil,  to  whom 
it  is  indebted  for  its  name,  is  the  second  lead- 
ing product  of  this  remarkable  land.  The 
tree,  the  juice  of  which  produces  this  twentieth 
century  necessity,  grows  wild  in  the  northern 
portion  of  the  country,  although  it  can  be  suc- 
cessfully cultivated.  No  effort  is  made  to 
preserve  the  trees  when  once  tapped,  and  the 
rubber  prospectors  are  continually  going  far- 
ther and  farther  into  the  interior  in  search  of 
new  districts.  The  trees  are  from  three  to 
twelve  feet  in  diameter,  of  slow  growth,  in- 
digenous to  the  region  of  the  Amazon  and  its 
tributaries,  growing  wild,  scattered  through 
the  jungles  and  tropical  shrubbery. 

The  forests  of  Brazil  are  practically  virgin. 
They  abound  in  dye,  cabinet  and  hard  woods 
and  the  opportunities  for  the  development  in 
this  field  alone  are  enormous.  Due  to  the  fact 
that  the  country  has  a  wonderful   series  of 


BRAZIL  21 

aqueous  arteries  the  transportation  problem  to 
mills  and  markets  is  easily  solved  and  the 
waterpower  can  be  used  in  preparing  the  tim- 
ber for  shipping. 

Brazil  has  at  present  more  local  factories 
than  all  the  other  Latin  American  countries 
combined,  forty  per  cent,  of  her  manufactured 
articles  being  cotton  goods,  which  find  a  ready 
market.     In  the  Federal  District  of  Rio  de 
Janeiro,  five  of  these  mills  have  eight  thou- 
sand operatives,  producing  yearly  about  80,- 
000,000  yards„     Petropolis  has  four  mills  and 
Sao  Paulo  twenty-five  with  a  total  output  of 
nearly  100,000,000  yards.     The  number  of  es- 
tablishments in  this  industry  alone  amounts  to 
3664,  giving  employment  to   168,760  hands, 
with'a  total  yearly  output  of  275,000,000  yards 

of  goods. 

Of  late  the  shoe-making  industry  has  de- 
veloped extensively.  In  191 3  there  were  in 
all  of  Brazil  4524  factories  employing  ten  or 
more  operatives,  with  a  total  invested  capital 
of  $18,857,000.  These  plants  are  nearly  all 
operated  by  American  machinery,  many  of 


22     SELLING  LATIN  AMERICA 

them  under  American  superintendents,  the  de- 
mand for  American  equipment  being  suf- 
ficiently large  to  warrant  the  big  shoe  ma- 
chinery and  shoe-finding  houses  of  New  Eng- 
land in  maintaining  their  own  offices  and  carry 
their  own  stock  in  the  larger  cities  devoted  to 
this  business. 

Brazil  is  wonderfully  rich  in  mines  of  pre- 
cious and  semi-precious  stones.  Among  the 
semi-precious  stones  to  be  found  are  achroite, 
actinolite,  agates,  amethysts,  analcime,  anatase, 
andalusites,  anthophyelite,  apophyllite,  apa- 
tite, aquamarines,  cymophane,  citune,  colum- 
bite,  desemine,  iolite,  jasper,  opals,  ruby,  sap- 
phires, spinel,  topaz,  tourmalines.  There  are 
many  deposits  of  minerals,  such  as  copper, 
iron,  silver,  gold,  arsenic,  barium,  bismuth, 
cinnabar,  cobalt,  galena,  manganese,  nickel, 
platinum,  tin,  and  wolframite.  There  are  also 
rich  veins  of  asbestos,  coal,  soapstone,  sulphur, 
salt,  marble,  mica,  and  evidences  of  petroleum. 

Gold  has  been  mined  in  Brazil  for  over  300 
years,  the  principal  deposits  being  in  the  State 
of  Minas  Geraes.     A  mine  near  the  Honario 


BRAZIL  23 

Bicalho  station  produced  from  1888  to  1912, 
over  $26,000,000  worth  of  gold  and  as  late  as 
191 1,  paid  a  dividend  of  10  per  cent.  An 
English  authority  has  estimated  the  total  out- 
put of  gold  to  date  from  all  mines  at  $1,000,- 


000,000. 


Brazil  is  reputed  to  be  the  second  largest 
diamond-producing  country  in  the  world,  the 
Brazilian  stone  being  considered  fifty  per  cent, 
better  than  others  owing  to  the  constant  attri- 
tion it  has  undergone  in  prehistoric  days.  At 
one  time  more  than  40,000  men  were  employed 
in  this  industry  in  Minas  Geraes  alone.  The 
best  diamond  fields  extend  from  10  degrees  to 
25  degrees  south  latitude  and  many  enormous 
and  high-grade  stones  have  been  discovered, 
the  total  amount  exported  in  175  years  or  up 
to  1903,  being  estimated  at  four  tons.  Edwin 
Streeter  in  his  book  on  precious  stones,  says 
that  'The  State  of  Minas  Geraes  produced  in 
the  first  twenty  years  144,000  carats.  Up  to 
1850, — 5,844,000  carats  worth  $45,000,000 
were  sold  and  some  $10,000,000  stolen  from 
the  mines  by  employes."     As  an  evidence  of 


24      SELLING  LATIN  AMERICA 

the  fact  that  these  mines  are  still  productive, 
there  were  registered  456  claims  in  1909  in  the 
Diamanta  Districts,  which  produced  $1,000,- 
000  worth  of  gems.  In  191 1  there  were  regis- 
tered in  the  State  of  Minas  Geraes  437  claims. 

Travel  along  the  coast  and  to  the  cities  lo- 
cated on  the  railway  lines  is  comparatively 
convenient  and  comfortable  although  very  ex- 
pensive. In  the  interior  and  from  the  beaten 
paths  it  IS  difficult  and  filled  with  hardships. 

Living  is  high — much  more  so  than  in  the 
larger  cities  of  the  States  or  Europe.  Hotels 
are  far  from  the  standard  one  is  accustomed  to 
in  towns  of  corresponding  size,  throughout 
the  world — a  statement  equally  true  of  all 
Latin  America. 

At  first  the  monetary  system  of  Brazil  may 
confuse  one,  its  currency  being  on  the  gold 
exchange  basis.  A  milreis  is  the  unit  of  value 
and  while  it  is  subject  to  fluctuation,  may  for 
all  practical  purposes  be  reckoned  as  worth 
.33^^  cents,  or  three  milreis  as  the  equivalent 
of  a  United  States  dollar.  The  symbol  for 
the  unit  is  $  and  the  value  of  our  dollar  would 


BRAZIL  25 

be  expressed  thus  3$ooo.  A  conto,  or  about 
$333.33  would  be  written  iooo$ooo.  The 
banking  of  Brazil  is  chiefly  controlled  by  the 
British,  while  Germany  is  their  closest  com- 
petitor, both  France  and  Italy  being  repre- 
sented each  by  a  bank.  The  National  City 
Bank  of  New  York  has  recently  established  a 
branch  in  Rio  de  Janeiro,  with  sub-agencies 
throughout  Brazil,  so  that  direct  exchange  on 
New  York  may  now  be  bought. 

Brazil  imported  in  1913,  $326,428,509 
worth  of  goods,  of  which  sum  the  United 
Kingdom  supplied  $79,881,008;  Germany, 
$57,043,754;  United  States,  $51,289,682; 
France,  $31,939,752;  Argentine,  $24,293,712. 

In  the  same  period  of  time  she  exported 
goods  to  the  value  of  $315,164,687,  the  United 
States  taking  about  one-third  of  the  total 
amount  or  to  be  exact,  $102,652,923;  Ger- 
many, $44,392,410;  United  Kingdom,  $41,- 
701,815;  France,  $38,685,561;  Holland,  $23,- 

252,700. 

The  United  States  should  do  a  much  larger 
trade  with  Brazil  owing  to  a  preferential  duty 


26      SELLING  LATIN  AMERICA 

allowed  our  nation  due  to  the  fact  that  we  are 
the  largest  consumers  of  her  leading  staple — 
coffee.  According  to  government  decree  No. 
9323,  of  January  17,  1912,  flour  imported 
from  the  States  pays  30  per  cent,  less  duty  than 
if  imported  from  any  other  land,  while  dried 
fruit,  condensed  milk,  typewriters,  rubber  ar- 
ticles, and  supplies,  scales,  refrigerators,  ce- 
ment, corsets,  school  furniture,  wind-mills, 
watches,  desks  and  printing  inks,  pay  20  per 
cent,  less  duty  than  similar  articles  imported 
from  other  countries. 

Brazil  exports  coffee,  rubber,  hides,  skins, 
cacao,  tobacco,  salt,  cotton,  sugar,  woods,  nuts, 
precious  and  semi-precious  stones  and  gold. 
She  imports  foodstuffs,  shoes,  machinery,  tex- 
tiles, building  woods,  ammunition,  wheat, 
automobiles,  vehicles,  codfish,  dried  fruits, 
glass,  toilet  articles,  building  and  kitchen 
hardware,  cement,  scientific  instruments,  iron 
and  steel,  enamelled  ware,  paints  and  varnish, 
haberdashers'  goods,  cottons,  hats,  corrugated 
iron,  galvanized  iron,  tools,  condensed  milk, 
stationery,     pipe,      printing     material     and 


BRAZIL  27 

presses,  electric  machinery  and  supplies,  type- 
writers, nails,  screws  and  rivets. 

American  fruits  are  much  in  demand  in 
Brazil,  and  an  excellent  market  exists  to-day 
for  apples.  Potatoes,  onions,  beets,  garlic  and 
other  fresh  vegetables  would  also  sell  well  and 
a  lucrative  trade  in  these  necessities  of  life 
could  be  developed  without  any  great  effort. 
The  refrigerator  ships  running  from  the  Ar- 
gentine to  New  York  with  meat  could  carry  as 
return  freight  these  perishable  cargoes  at  a 

low  rate. 

Steamship  connections  between  Europe  and 
the  United  States,  with  Brazilian  ports  are 
numerous  and  sailings  comparatively  frequent 
and   as   a   rule  the   accommodations   are   all 
that  could  be  desired.     From  New  York  the 
Booth    line    (English)    has   two   steamers    a 
month  to  North  Brazil  and  Amazon  River 
towns,  touching  at  Barbados,  Para  and  Man- 
aos,  with  a  ship  every  six  weeks  to  Iquitos, 
Peru.     One  steamer  goes  each  month  to  North 
Brazilian  ports  including  Parnahyba,  Natal 
and    nearby    localities.     The    United    States 


28      SELLING  LATIN  AMERICA 

Steamship  Line  (American)  has  one  vessel 
monthly  for  Pernambuco,  Rio  de-Janeiro  and 
Santos,  freight  being  redistributed  at  these 
ports  for  intermediate  points.  The  Lloyd 
Brazilleiro  Line  (Brazilian)  maintains  a 
semi-monthly  service  between  New  York  and 
Natal,  and  Parahiba;  and  Pernambuco,  Rio 
de  Janeiro,  and  Santos,  with  occasional  serv- 
ice to  other  larger  ports.  These  boats  do  not 
as  a  rule  carry  passengers.  They  also  main- 
tain a  service  along  the  smaller  coast  towns 
and  the  rivers  leading  into  the  interior  of 
Brazil,  even  having  regular  sailings  from 
Asuncion,  Paraguay,  for  Brazilian  river  towns. 
The  Lamport  &  Holt  Line  (English)  has 
weekly  sailings  from  New  York  to  Bahia,  Rio 
de  J-aneiro  and  Santos,  generally  stopping  at 
Trinidad  and  Barbados,  West  Indies,  on  their 
trip  north.  The  Prince  Line  (British)  touch 
once  a  month  at  Rio  de  Janeiro  and  Santos, 
carrying  freight  chiefly.  Other  vessels  of 
this  line  make  monthly  calls  at  Pernambuco, 
Bahia,  Rio  de  Janeiro  and  Santos.  Numer- 
ous   tramp    ships    also    sail    from   American 


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BRAZIL  29 

ports  on  the  eastern  coast  of  the  States  to 

Brazil. 

Brazil  has  15,272  miles  of  railways,  federal, 
state  and  private,  over  many  of  which  tickets 
which  correspond  to  our  mileage  books  are 
issued,  for  the  convenience  of  the  travelling 
public.  Many  new  lines  are  in  process  of 
construction  or  contemplated,  and  a  very  de- 
cided effort  is  being  made  to  unite  the  various 
main  lines  by  connecting  roads,  so  that  the  en- 
tire republic,  including  its  most  remote  dis- 
tricts, may  be  thus  reached. 

The  leading  cities,  which  should  be  visited 
for  business  purposes,  are: — 

Population 

Rio  de  Janeiro 1,128,000 

Sao   Paulo 450,000 

Bahia    300,000 

Belem  or  Para 250,000 

Pernambuco    200,000 

Porto   Allegre 125,000 

Manaos    60,000 

Santos 45,000 

Campinas   40,ooo 

Ceara 40,ooo 

San  Luiz  or  Maranao 40,000 

Parahiba    32,ooo 


30     SELLING  LATIN  AMERICA 

Population 

Nichteroy 30,000 

Florianopolls,  or  Desterro 27,000 

Rio  Grande  do  Sul 20,00O 

Some  of  the  States  and  municipalities  of 
Brazil  have  a  special  tax  for  commercial 
travellers,  which  varies  from  year  to  year, 
concerning  the  payment  of  which  arrange- 
ments can  be  best  made  when  on  the  ground. 
A  small  tax  is  also  levied  on  trade  samples, 
presumably  to  be  refunded  when  leaving  the 
country.  It  is  advisable  to  learn  how  best  to 
handle  the  situation  from  travellers  with 
whom  you  will  meet  en  route.  As  a  rule,  all 
of  these  are  mere  matter  of  detail  and  can  be 
advantageously  arranged,  through  the  proper 
channel. 


Ill 

ARGENTINE 

Juan  Diaz  de  Solis  in  1508  discovered  the 
Rio  de  la  Plata,  otherwise  known  as  the  River 
Plate,  while  searching  for  a  southerly  pas- 
sage to  the  Pacific  Ocean.  In  1525  Sebastian 
Cabot  entered  the  river  and  gave  it  the  name 
it  now  bears,  at  the  same  time  erecting  a  fort 
near  its  mouth.  A  wealthy  Spaniard,  Pedro 
de  Mendoza,  in  1536,  in  exchange  for  certain 
landed  rights  and  governmental  privileges, 
established  what  is  now  the  present  city  of 

Buenos  Aires. 

It  is  unnecessary  for  the  purposes  of  this 
book  to  do  more  than  state  briefly  that  the  con- 
ditions imposed  by  Spain  on  all  its  colonies 
were  outrageously  unjust  and  caused  much  dis- 
sension. Efforts  to  progress  were  throttled 
and  the  friction  between  the  mother  country 
developed  until  the  conquest  of  Spain  by  Na- 
si 


32      SELLING  LATIN  AMERICA 

poleon,  which  gave  the  many  Spanish  colonies 
that  had  become  thoroughly  satiated  with  dis- 
gust and  contempt  for  the  Madrid  Govern- 
ment, a  chance  to  rebel  and  establish  them- 
selves as  independent  nations.  Taking  advan- 
tage of  the  condition  in  Europe  and  having  in 
mind  the  successful  revolution  of  the  Ameri- 
can colonists,  the  people  of  Argentine,  Bolivia, 
Paraguay  and  Chile  revolted,  and  after  much 
fighting  finally  drove  the  Spanish  troops  from 
their  shores.  May  25,  18 10,  the  people  of 
Buenos  Aires  declared  their  independence. 
A  Congress  was  held  in  Tucuman  on  July  9, 
1 8 16,  the  result  of  which  was  the  more  com- 
plete unification  of  the  Argentine  people  under 
the  title  of  the  United  Provinces  of  the  La 
Plata  River.  The  government  in  i860 
adopted  as  its  national  title  'The  Argentine 
Nation"  by  which  it  now  prefers  to  be  called. 
Few  know  that  the  British  had  covetous 
plans  upon  this  really  wonderful  country  and 
twice  invaded  it,  once  in  1806,  and  again  in 
1807.  After  their  fleet  had  bombarded  the 
capital,  the  troops  landed,  and  were  both  times 


ARGENTINE  33 

thoroughly  defeated,  some  of  the  English 
battle  flags  which  were  captured  still  being 
exhibited  in  Buenos  Aires. 

The  government  of  the  Argentine  Nation 
is  patterned  after  that  of  the  United  States 
of  America,  and  has  a  constitution  similar  in 
its  important  features.  There  are  three 
branches  of  government,  executive,  legislative 
and  judicial;  the  legislative  power  being 
vested  in  a  Congress  composed  of  a  Senate 
and  a  House  of  Deputies.  The  executive 
power  is  vested  in  a  President  and  Vice-Presi- 
dent elected  as  those  of  the  United  States,  each 
holding  office  for  the  period  of  six  years.  Of 
late  the  Government  has  been  very  stable  and 
there  have  been  less  tendencies  to  overthrow 
the  authorized  power  than  in  most  Latin 
American  countries.  By  a  treaty  with  Chile 
in  1 88 1,  the  great  territory  of  Patagonia,  to 
the  south  of  the  Argentine,  was  divided  be- 
tween these  two  nations. 

Argentine  covers  an  area  of  1,153,418  square 
miles,  or  about  one-third  as  large  as  the 
United  States.     To  be  more  specific  it  is  as 


34     SELLING  LATIN  AMERICA 

large  as  Texas,  and  all  of  our  territory  east  of 
the  Mississippi.  It  is  bounded  on  the  north 
by  Bolivia,  and  Paraguay,  on  the  west  by 
Chile,  on  the  south  by  a  portion  of  Chile 
and  the  Atlantic  Ocean.  Paraguay,  Brazil 
and  Uruguay,  together  with  the  Atlantic 
Ocean  which  washes  its  shores  for  more  than 
1500  miles,  constitute  its  eastern  boundary. 
Over  700,000,000  acres  of  its  land  is  admir- 
ably adapted  for  cattle  raising  and  the  grow- 
ing of  cereals,  a  fact  which  argues  much  for 
its  future  development  and  prosperity. 

Its  population  is  variously  estimated  at 
from  6,000,000  to  9,000,000  but  it  can  with 
safety  be  placed  at  7,000,000,  a  little  less  than 
25  per  cent,  of  its  inhabitants  residing  in  the 
city  of  Buenos  Aires,  which  has  1,700,000 
citizens,  a  rather  unusual  condition  of  affairs. 
The  early  settlers  of  the  Argentine  were  of 
course  Spaniards  and  their  descendants  form 
the  bulk  of  the  population  to-day.  There  are 
comparatively  few  blacks  or  mixed  breeds, 
slavery  having  been  abolished  in  18 13,  while 
the  Indians  and  aborigines  are  scattered  along 


ARGENTINE  35 

the  frontier.  Early  in  its  history  Argentine 
encouraged  emigration  from  Europe,  using 
as  an  inducement  the  free  grant  of  public 
lands,  which  proved  especially  attractive  to 
the  Italian  and  Spaniard.  In  fact  the  pre- 
ponderance of  the  Italian  in  the  business  and 
social  life,  due  to  this  movement  has  had  a 
noticeable  effect  on  the  Spanish  language  as 
spoken  in  this  country.  From  1857  ^^  ^9^3 
the  total  of  newcomers  amounted  to  4,781,653, 
many  of  whom  became  landholders  and  began 
at  once  to  contribute  to  the  growth  and  wealth 
of  the  country.  The  population  to-day  is 
7.8  persons  per  square  mile  as  against  32.31 
per  square  mile  in  the  United  States.  More 
than  300,000  persons  migrate  to  this  country 
each  year. 

The  chief  characteristic  of  the  physical 
formation  of  the  Argentine  is  its  vast  pampas 
or  plains  stretching  from  the  Rio  de  la  Plata 
to  the  west,  terminating  in  the  foothills  of  the 
Andes,  or  the  Cordilleras.  Perhaps  no  part 
of  the  earth's  surface  has  such  flat,  smooth, 
treeless  plains  as  here  confront  the  traveller. 


36      SELLING  LATIN  AMERICA 

The  climatic  conditions,  owing  to  the  fact  that 
it  extends  over  thirty-four  degrees  of  latitude, 
vary  from  tropical  in  the  north  to  practically 
arctic  coldness  in  the  south,  the  seasons  being 
the  reverse  of  ours, — that  is,  they  have  winter 
when  we  have  summer  and  vice  versa.  The 
greater  portion  of  the  country  is  in  the  temper- 
ate zone,  the  summers  being  very  hot  and  the 
winters  typified  by  heavy  rains,  especially  in 
the  eastern  portion,  diminishing  toward  the 
west  where  there  is  often  much  drought.  In 
the  extreme  south,  in  what  was  formerly  Pata- 
gonia the  heavy  snows  of  winter  take  the  place 
of  rains,  which  together  with  the  warm  sum- 
mers produce  a  luxuriant  growth  of  grass,  es- 
pecially adapted  for  the  grazing  of  sheep. 

The  Argentine  has  for  some  years  been  one 
of  the  granaries  of  the  world  and  as  its  avail- 
able land  becomes  cultivated  is  destined  to 
play  a  more  important  role  in  this  field. 
Some  idea  of  its  rapid  development  may  be 
gained  from  the  fact  that  in  1904,  26,000,000 
acres  wxre  under  cultivation,  while  in  1913 
over    60,000,000   were    sown.     Wheat    is    of 


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ARGENTINE  37 

course  its  chief  cereal,  last  year  over  17,000,- 
000  acres  being  cultivated.  The  Argentine 
Agricultural  Department  states  that  for  the 
same  period  of  time  there  were  12,000,000 
acres  in  corn;  4,000,000  in  oats  and  15,000,000 
in  lucerne  or  alfalfa,  proportionately  large 
territories  being  planted  with  barley,  sugar, 
grapes,  rice,  cotton  and  tobacco. 

This  country  has  been  the  second  largest  lin- 
seed producing  nation  of  the  world,  yielding 
first  place  to  India.  Last  year  nearly  6,000,- 
000  acres  were  devoted  to  the  growing  of  this 
seed  alone. 

Comparatively  little  attention  is  paid  to 
truck  gardening  or  the  raising  of  kitchen  vege- 
tables, fruits  or  berries,  and  this  offers  a  re- 
markable opportunity  to  one  versed  in  the  sub- 
ject. Conditions  for  growing  these  necessi- 
ties are  most  favorable  but  have  been  neglected 
in  the  efforts  made  to  develop  other  sources  of 
revenue. 

Tucuman  has  been  the  center  of  the  sugar 
industry,  practically  all  of  which  is  consumed 
in  the  country,  43  refineries  and  plants  being 


38     SELLING  LATIN  AMERICA 

devoted  to  this  business.  The  grapes  grown 
at  the  foot  of  the  eastern  slopes  of  the  Andes, 
near  and  around  Mendoza,  yield  500,000,000 
quarts  of  wine  yearly,  most  all  being  for  in- 
ternal consumption.  Owing  to  the  reversal 
of  seasons  here,  crops  are  harvested  when  ours 
are  being  sown. 

Recently  dairying  has  developed  to  a  re- 
markable extent,  over  1300  creameries  and 
factories  being  devoted  to  the  manufacture  of 
butter  and  cheese,  doing  a  gross  business  of 
nearly  $9,000,000.  Much  butter  and  cheese 
are  shipped  to  England,  Brazil  and  South 
Africa.  For  the  first  time  in  its  history,  but- 
ter was  exported  to  the  United  States  last  year. 

Flour  milling  was  established  in  the  Argen- 
tine in  the  i6th  century.  Prior  to  this  Chilean 
flour  supplied  the  demands  for  this  article. 
To-day  in  addition  to  providing  sufficient  for 
its  own  requirements,  Argentine  ships  much 
of  its  flour  to  Brazil,  Chile  and  Europe  and 
has  about  800  flour  mills  in  operation,  repre- 
senting an  investment  of  approximately  $14,- 


000,000. 


ARGENTINE  39 

From  the  days  of  the  early  Spaniards  stock- 
raising  has  flourished  and  will  always  be  one 
of  the  chief  industries  of  the  land.  Not  only 
the  Government  but  individuals  as  well  real- 
ize this  and  co-operate  with  each  other  for  the 
purpose  of  producing  the  best  strains  of  all 
breeds  of  cattle. 

There  are  many  ^'refrigerificos"  or  cold- 
storage  plants  and  abattoirs  throughout  the 
land  and  for  years  Europe  received  practi- 
cally all  of  Argentine's  animal  products, 
her  exports  in  this  line  alone  being  approxi- 
mately $350,000,000  in  1914.  Due  to  the 
fact  that  these  establishments  were  oper- 
ated by  British  capital,  England  naturally  took 
most  of  this  meat.  The  larger  American 
packing-houses  have  now  entered  the  trade 
with  the  double  purpose  of  supplying  both 
their  European  and  American  customers  from 
this  field  and  direct  refrigerator  ships  now  run 
from  the  River  Plate  to  New  York  City  with 
cargoes  of  Argentine  beef  and  mutton.  The 
last  census  showed  30,000,000  beef  cattle; 
9,000,000    horses;    500,000    mules;    300,000 


40     SELLING  LATIN  AMERICA 

asses;  90,000,000  sheep;  4,000,000  goats  and 
3,000,000  pigs. 

Nature  seems  content  in  having  blessed  this 
country  with  fertile  pampas  and  agricultural 
lands,  consequently  there  are  comparatively 
few  minerals  within  its  territory.  There  are 
however  some  veins  of  gold,  silver,  copper  and 
wolfram.  Petroleum  has  recently  been  dis- 
covered, but  not  in  large  quantities.  There  is 
no  coal  in  the  Argentine,  but  in  some  sections 
bogs  of  peat  cover  extensive  areas  and  await 
development. 

To  the  north  and  in  the  interior  are  forests 
of  valuable  woods,  there  being  over  thirty- 
three  species  of  commercial  value.  Que- 
bracho wood  is  found  in  the  provinces  of 
Santa  Fe,  Santiago  del  Estero  and  Corrientes. 
It  is  very  hard,  impervious  to  moisture  and 
will  not  rot.  Due  to  these  admirable  quali- 
ties it  was  formerly  used  for  sleepers  for  rail- 
ways but  now  owing  to  the  fact  that  it  is  ex- 
cessively rich  in  tannin  it  is  used  almost  ex- 
clusively for  the  purpose  of  curing  leather. 
Formerly  it  was  exported  in  large  logs  to  Eu- 


ARGENTINE  41 

rope  or  to  the  States  and  the  tanning  extracts 
expressed,  but  to-day  there  are  many  factories 
in  the  districts  where  the  wood  is  grown,  de- 
voted to  obtaining  the  tannin  directly,  thereby 
materially  reducing  the  cost  of  the  article. 
Inasmuch  as  hides  and  quebracho  are  products 
of  the  Argentine  it  would  seem  that  the  tan- 
ning of  leather  would  under  proper  manage- 
ment develop  into  a  large  industry  here. 
The  export  of  tannin  for  1914  was  over  $11,- 
000,000. 

Outside  of  the  industries  referred  to  and  a 
few  breweries,  cigar  factories,  and  apparel 
factories,  wherein  goods  for  local  consumption 
are  produced,  there  is  no  general  manufactur- 
ing in  the  Argentine. 

No  other  country  of  Latin  America  is  as 
well  provided  with  railways  as  the  Argentine, 
nor  with  as  regular  and  superior  access  to 
Europe  and  the  States  and  all  parts  of  the 
world.  More  than  fifty  steamship  lines  ar- 
rive and  depart  regularly  from  the  various 
Argentine  ports,  all  the  seafaring  nations  of 
the  earth  being  represented.     In   1852,  one 


42     SELLING  LATIN  AMERICA 

observer  counted  over  600  vessels  in  the  har- 
bor of  Buenos  Aires  flying  the  American  flag 
or  more  than  double  the  number  of  all  the 
other  nations  combined.  To-day  but  few  are 
to  be  seen  in  the  vast  shipping  of  this  busy 
port. 

The  Argentine  Republic  stands  ninth 
among  the  world's  nations  in  the  length  of  her 
railways,  having  about  22,000  miles  of  track. 
Many  lines  are  in  process  of  construction  or 
contemplated,  the  public  and  the  government 
both  realizing  that  a  complete  network  of  rail- 
ways leading  to  the  ports  accelerate  the  mov- 
ing of  crops  and  cattle  and  are  absolutely  es- 
sential to  its  prosperity.  Buenos  Aires  quite 
naturally  is  the  principal  terminal  of  most 
roads,  while  Santa  Fe,  Rosario,  Bahia  Blanca 
and  La  Plata  are  rapidly  coming  to  the  front 
as  shipping  centers  and  are  providing  appro- 
priate facilities  for  handling  trade.  It  has 
been  said  that  every  railway  in  the  country 
is  extending  its  lines  more  and  more  into  the 
interior,  and  railway  journeys  to  Brazil,  Para- 
guay and  Bolivia  as  well  as  Chile  are  now 


ARGENTINE  43 

possible.  It  may  be  interesting  to  note  that 
the  longest  stretch  of  straight  track  known  to 
railroad  builders  is  to  be  found  in  the  Argen- 
tine, where  the  rails  run  a  distance  of  175 
miles  without  a  curve  of  any  kind. 

Wagon  roads  outside  of  the  larger  cities  are 
poor  and  in  bad  condition,  and  much  is  needed 
to  be  done  in  this  respect. 

There  are  many  weekly  sailings  of  the  most 
modern  and  swift  passenger  ships  to  Europe, 
one    Italian    line   making   the   voyage    from 
Buenos  Aires  to  Genoa  in  fifteen  days.     It  is 
also  possible  to  go  via  Hamburg  or  England  to 
New  York  in  better  ships  for  practically  the 
same  money  and  in  less  time  than  is  taken  by 
ships  engaged  in  the  direct  run  from  Buenos 
Aires  to  New  York.     The  Lamport  &  Holt 
Line  (British)  runs  directly  from  New  York 
to  Buenos  Aires,  with  weekly  sailings,  carry- 
ing freight  and  passengers.     The  Prince  Line 
(British)  and  the  Barber  Line  (American  but 
flying    the    British    flag),    the   Norton    Line 
(British),    the    American    Rio    Plate    Line 
(American)  leave  New  York  twice  a  month 


44     SELLING  LATIN  AMERICA 

for  Argentine  ports.  The  Houston  Line 
(British)  from  Boston  and  New  York  and 
the  New  York  and  South  American  Line  sail 
monthly  from  New  York  for  River  Plate 
ports.  The  Munson  Line  (American)  from 
Mobile,  Alabama,  sends  two  ships  monthly  to 
Buenos  Aires.  There  are  many  tramp  ships 
from  American  ports  in  this  trade  also. 

The  docks  and  facilities  for  handling  goods 
in  Buenos  Aires  are  second  to  none  in  the 
world  and  are  modeled  after  the  famous 
Liverpool  system,  having  cost  over  $50,000,- 
000.  Steamers  unload  cargoes  directly  into 
the  government  custom  warehouses,  on  the 
other  side  of  which  are  networks  of  railway 
tracks  from  which  they  can  be  forwarded  to 
the  interior.  Each  of  the  large  cement-sided 
canals  or  basins  for  the  ship  traffic  is  provided 
with  locks  or  water  gates,  while  the  masonry 
warehouses,  buildings  and  grain  elevators  ex- 
tend for  miles  along  the  city  water  front.  Yet 
the  business  of  the  port  has  grown  so  that  there 
is  much  congestion,  especially  at  certain  sea- 


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ARGENTINE  45 

sons  of  the  year  and  plans  are  being  consid- 
ered for  doubling  its  present  facilities. 

Much  of  the  impetus  in  trade  circles  in  this 
land  is  due  to  the  presence  of  the  English, 
Germans  and  Italians  who  control  the  bank- 
ing, transportation  and  commercial  life  of  the 
country.     Both   the   Briton   and   the  Teuton 
have  large  sums  invested  in  all  kinds  of  en- 
terprises, the  total  being  estimated  at  $2,000,- 
000,000.     The  Italian  has  developed  into  the 
small    shopkeeper    and    farmer.     In    Buenos 
Aires  alone  there  are  two  daily  papers  printed 
in  English,  which  serves  to  give  some  idea  of 
the  extent  of  the  English  speaking  population 
in   this   city.     There   are   also    daily   papers 
published   in   Italian,   German,   French   and 

Arabic. 

Practically  all  the  nations  of  Europe  are 
represented  in  the  banking  business,  the  United 
States  being  the  last  to  enter  the  field.  The 
English  are  the  strongest  and  the  Germans 

next. 

Argentine  is  supposed  to  be  on  a  gold  ex- 


46      SELLING  LATIN  AMERICA 

change  basis,  the  gold  peso  being  worth  one 
hundred  centavos,  or  in  our  money. 96.5  cents. 
The  gold  peso  is  designated  by  the  sign  $C/L, 
the  symbol  C/L  meaning  curso  legal,  or  legal 
tender.  This  is  practically  an  imaginary 
coin,  and  the  money  one  sees  is  paper  currency, 
the  paper  peso  being  worth  44  per  cent,  of  its 
face  value,  or  42.46  cents  in  United  States 
gold.  This  is  represented  in  the  following 
manner  $M/N,  meaning  moneda  nacional  or 
national  money.  This  paper  currency  fluctu- 
ates slightly  each  day,  being  governed  by  the 
market  conditions.  The  abbreviations  O/S, 
C/L,  and  M/N  are  placed  before  the  dollar 
or  peso  mark,  as  for  example  O/S  $500  or 
may  follow  it,  as,  for  instance,  $500  M/N. 

The  Argentine  has  long  been  noted  for  its 
unfavorable  fees  charged  travellers,  each 
province  haying  a  separate  tariff,  varying  ac- 
cording to  the  commodity  one  may  be  selling. 
They  are  subject  to  such  changes  on  short 
notice  that  it  is  useless  to  give  them  here,  be- 
sides the  subject  has  been  dealt  with  else- 
where in  this  book.     Before  doing  business  it 


ARGENTINE  47 

is  wise  to  give  this  matter  careful  considera- 
tion.    No  duty  is  charged  on  samples. 
The  following  cities  should  be  visited: 

Population 

Buenos  Aires 1,700,000 

Rosario 300,000 

Cordoba    120,000 

La   Plata 100,000 

Tucuman    80,000 

Bahia  Blanca 75>CKX) 

Mendoza    65,000 

Santa   Fe 50,000 

Salta 40,000 

Parana    37)00O 

Corrientes    30,000 

San  Juan    16,000 

San  Luis 15,000 

The  Argentine  exported  goods  to  the  value 
of  $468,999,410  in^i9i3,  and  during  the  same 
time  imported  goods  to  the  extent  of  $408,- 
711,966,  of  which  amount  less  than  8  per  cent, 
came  from  the  United  States.  England  con- 
trolled the  bulk  of  the  trade  with  Germany 
second  and  France  third. 

The  principal  exports  are  meats  and  meat 
products,  agricultural  products  such  as  wheat, 


48      SELLING  LATIN  AMERICA 

corn,  oats,  barley,  linseed,  hay,  alfalfa,  woods 
and  dye  woods,  live  animals,,  wool,  hides,  skins, 
butter  and  cheese.  It  imports  foodstuffs,  tex- 
tiles, iron,  steel,  railway  supplies  and  rolling 
stock,  agricultural  implements  and  machinery, 
wagons,  carriages,  automobiles  and  automo- 
bile supplies,  electrical  apparatus,  glass,  china, 
ready-made  clothes,  hats,  shoes,  toilet  articles, 
drugs  and  chemicals,  paints  and  varnish,  stock- 
ings and  socks,  silks,  kitchen-utensils,  enam- 
elled ware,  tools,  vegetables,  fruits,  eggs,  oils, 
greases,  and  coal. 


IV 

URUGUAY 


The  first  European  who  set  foot  on  Uru- 
guayan soil  was  the  man  who  discovered  the 
Rio  de  la  Plate— Juan  Diaz  de  Solis.  This 
was  in  1508.  He  and  his  associates  were  im- 
mediately attacked  by  the  Charruca  Indians, 
who  annihilated  the  party.  Later  on  Portu- 
guese settlers  from  Brazil  attempted  to  colon- 
ize this  land,  but  they  met  with  repulses, 
as  did  also  the  Spanish  colonists  who  followed 
them.  As  a  result  of  the  invasion  of  this  terri- 
tory by  Portuguese  and  Spanish  it  was  claimed 
by  both  these  countries  and  became  a  bone  of 
contention  between  them  for  more  than  two 
hundred  years.  The  Portuguese  colonists 
were  finally  routed  bodily  and  their  city  of 
Montevideo,  founded  in  1724,  came  under 
control   of   the   Spanish  Viceroy.    Portugal 


49 


50      SELLING  LATIN  AMERICA 

still  persisted  in  claiming  this  province  and 
when  Dom  Pedro  made  an  Empire  of  Brazil, 
he  also  attempted  to  exercise  jurisdiction  over 
Uruguay  as  well.  This  ultimately  resulted  in 
a  war  between  Brazil  and  Argentine,  in  which 
the  Uruguayans  rallied  to  the  aid  of  the 
Argentinians,  defeating  the  Brazilians.  A 
treaty  of  peace  in  which  the  mediation  of  Eng- 
land was  asked,  was  signed  August  27,  1828, 
giving  Uruguay  its  independence. 

The  present  government  is  based  upon  that 
of  the  United  States  and  comprises  executives 
in  the  persons  of  a  President  and  a  Vice-Presi- 
dent, elected  for  four  years,  and  a  legislative 
body,  consisting  of  a  House  of  Representatives 
and  a  Senate. 

Uruguay  occupies  an  area  of  72,210  square 
miles,  or  is  about  as  large  as  all  of  the  New 
England  States.  It  is  virtually  an  extensive 
undulating  plain,  having  in  its  northern  sec- 
tion a  series  of  mountain  ranges  but  few 
of  which  are  higher  than  2000  feet.  It  is 
bounded  on  the  east  by  the  Atlantic  Ocean 
and  on  the  north  by  Brazil,  the  Rio  Cuareim 


URUGUAY  51 

flowing  between  the  two  countries.  The  Uru- 
guay, dividing  Argentine  and  Uruguay,  forms 
its  western  boundary  while  the  wide  mouth  of 
the  Rio  de  la  Plate  may  be  called  its  southern 
boundary  line. 

The  climate  is  extremely  temperate  and 
healthful— so  much  so  in  fact  that  it  is  rapidly 
developing  into  a  summer  resort  for  Chileans, 
Argentinians  and  Brazilians;  many  of  the 
wealthiest  of  these  nationalities  have  estab- 
lished seashore  homes  within  its  boundaries, 
especially  outside  of  Montevideo.  Extreme 
summer  heat  such  as  one  finds  in  Buenos  Aires, 
is  never  encountered  here,  although  there  are 
days  in  winter  when  it  is  particularly  cold. 
Snow  occasionally  falls. 

Uruguay  has  a  population  of  1,500,000,  its 
people  being  among  the  best  in  Latin  America. 
As  in  Argentine,  the  Indians  are  compara- 
tively few  and  to  be  found  in  remote  districts 
only.  There  are  practically  no  negroes  and 
mixed  breeds.  Owing  to  the  influx  of  Eng- 
lish, Italian,  and  Swiss  colonists,  the  standard 
of  the  population  is  continually  rising  and  its 


52      SELLING  LATIN  AMERICA 

geographical  position,  salubrious  climate  and 
vast  areas  of  tillable  land  will  attract  more  and 
more  desirable  settlers  to  its  boundary.  Im- 
migration is  encouraged  along  the  most  mod- 
ern and  progressive  lines. 

Uruguay  is  fortunate  in  having  many  nav- 
igable rivers,  the  chief  of  which  are  the  Rio 
de  la  Plate  and  the  Uruguay,  giving  a  total  of 
over  700  miles  of  water  deep  enough  for  ocean- 
going vessels.  One  river  alone — the  Uruguay 
— has  ten  ports  open  for  interoceanic  trade, 
the  cities  on  this  river  being  Carmelo,  Neuva 
Palmira,  Soriano,  Fray  Bentos,  Neuva  Berlin, 
Casa  Blanca,  Pysandu,  Neuva  Pysandu, 
Salto  and  Santa  Rosa.  Mercedes  is  a  large 
city,  on  the  Rio  Negro,  and  is  used  as  a  port 
of  call  for  ocean-going  vessels.  There  is  also 
Lake  Merim  on  the  borders  of  Brazil  on 
which  run  small  launches. 

Uruguay  has  comparatively  few  railroad 
systems  and  only  1600  miles  of  railways. 
There  are  many  projects  for  railway  develop- 
ment  however   and    the   completion   of    the 


URUGUAY  53 

mileage  planned  will  rapidly  bring  the  coun- 
try to  the  fore.  American  capital  is  now  be- 
ing interested  in  this  field. 

While  there  are  some  minerals  to  be  found 
in  the  mountainous  sections,  still  the  country 
will  always  be  a  pastoral  one.  Mica,  gold, 
precious  stones  and  petroleum  are  known  to 
exist,  yet  comparatively  little,  if  anything,  has 
been  done  along  these  lines. 

Of  her  45,000,000  acres  of  land,  less  than 
5  per  cent,  is  devoted  to  agriculture,  owing  to 
lack  of  population.  There  are  about  1,700,- 
000  acres  of  virgin  forest  lands  and  over  40,- 
000,000  acres  devoted  to  grazing  cattle  and 
sheep. 

Wheat  is  the  chief  cereal  grown,  with  corn, 
barley,  oats  and  linseed  in  the  order  named. 
Tobacco  has  been  tried  with  favorable  results. 

The  raising  of  cattle  of  all  kinds  and  the 
maintenance  of  slaughterhouses  and  packing 
establishments  for  the  purpose  of  supply- 
ing Europe  with  meat  forms  the  largest  in- 
dustry.    One  plant  alone  at  Fray  Bentos — 


54      SELLING  LATIN  AMERICA 

owned  by  the  Liebig  Company  and  where  the 
extract  of  that  name  is  made, — kills  over 
3,000,000  head  a  year.  Very  naturally  meat 
by-products  are  produced  and  exported  in 
large  quantities.  Much  frozen  and  tinned 
meat  is  exported.  Some  idea  of  the  enormous 
size  of  the  cattle  industry  here  may  be  gained 
when  we  are  told  that  at  the  present  time 
Uruguay  has  over  9,000,000  cattle,  30,000,000 
sheep,  800,000  hogs,  600,000  goats  and  430,000 
horses. 

One  of  the  leading  industries  is  the  shearing 
of  wool,  all  of  which  is  exported.  The  good 
climatic  conditions,  in  connection  with  atten- 
tion paid  to  breeding,  have  resulted  in  the 
production  of  a  wool  of  superior  length  and 
texture  and  as  a  consequence  wool-buyers  from 
Europe  are  attracted  to  this  market.  In  1913 
the  amount  exported  reached  the  enormous 
sum  of  $35,875,975. 

Despite  the  fact  that  Uruguay  has  no  gold 
coin  of  its  own,  it  is  on  a  gold  basis  and  its 
peso,  or  dollar,  is  worth  almost  four  cents 
more  than  ours,  or  to  be  exact,  $1,034.     This 


URUGUAY  5S 

is  a  decidedly  unusual  state  of  affairs  for  Latin 
America,  and  reflects  favorably  on  the  finan- 
cial condition  of  the  country. 

There  is  much  English  capital  invested 
here,  and  to  a  large  extent  trade  is  in  the  hands 
of  Englishmen.  Many  German  and  Italian 
houses  are  represented  and  these  nationalities 
are  also  becoming  interested  in  local  enter- 
prises. 

Uruguay  exports  w^ool,  hides,  horn,  hair, 
meats  and  meat  products,  grease  tallov^,  grain 
and  cereals,  the  total  amount  expressed  in  fig- 
ures for  1913  being  $65,142,000. 

In  1913  she  imported  goods  to  the  value  of 
$50,666,000,  the  leading  items  being  food- 
stuffs, iron,  steel,  glass,  china,  wooden  prod- 
ucts, oils,  chemicals,  medicines,  stationery, 
toilet   articles,    tobacco,   textiles,   shoes,   hats, 

and  silks. 

While  commercial  travellers  are  supposed 
to  pay  a  yearly  license  of  $100,  still  this  can 
be  waived  by  making  the  proper  connection 
with  some  local  dealer  or  commission  house. 

The  following  cities  should  be  visited: 


^6      SELLING  LATIN  AMERICA 

Population 

Montevideo 500,000 

Pysandu    35>ooo 

Mercedes    25,000 

Salto    25,000 

Fray  Bentos   15,000 

Rivera   10,000 

Guadalupe 10,000 

Minas 10,000 

Florida    10,000 

Colonia    10,000 

Uruguay  has  from  three  to  five  steamships 
sailing  weekly  direct  for  Europe,  or  the 
United  States. 

All  vessels  leaving  either  Europe  or  the 
United  States  and  calling  at  Buenos  Aires 
touch  at  Montevideo  the  day  before  arriving 
at  Buenos  Aires,  as  well  as  on  the  return  trip. 
Two  night  lines  of  comfortable  steamers  con- 
nect Buenos  Aires  and  Montevideo,  which  are 
about  no  miles  apart.  Ample  transoceanic 
and  coastwise  freight  service  is  also  provided. 


V 

PARAGUAY. 

Due  to  the  ambitions  of  one  man — Carlos 
Antonio  Lopez — a  dictator  of  the  worst  type, 
with  Napoleonic  designs,  Paraguay,  one  of 
the  finest  of  South  American  countries,  one 
with  brilliant  prospects  and  holding  the  great- 
est opportunities,  is  to-day  the  most  backward 
and  has  the  smallest  population. 

Paraguay  was  discovered  by  Sebastian 
Cabot  in  1526.  Following  him  came  Juan  de 
Ayolas  and  Domingo  Irala,  who  in  1536 
founded  the  city  of  Asuncion,  now  the  capital 
of  the  republic.  Up  to  1810  it  was  a  Spanish 
colony,  being  latterly  governed  by  the  Vice- 
roy from  the  home  country  who  resided  in 
iBuenos  Aires.  At  that  time  it  was  called  the 
Province  of  Paraguay.  It  declared  its  inde- 
pendence from  the  mother  country  in  181 1, 
the  Spanish  Governor-General  aiding  in  the 

57 


58      SELLING  LATIN  AMERICA 

movement.  After  trying  various  forms  of 
government  it  became  a  republic  in  1844, 
which  form  of  government  still  exists,  the  ex- 
ecutive power  being  vested  in  a  President  and 
yice-President,  with  a  legislative  body  com- 
posed of  a  Senate  and  Chamber  of  Deputies. 
It  is  impossible  in  even  briefly  writing  of 
this  really  wonderful  country  to  refrain  from 
some  reference  to  the  one  man,  Lopez,  whose 
desire  for  power  resulted  in  the  almost  total 
annihilation  of  a  people.  His  arbitrary  rule 
embroiled  his  nation  in  disputes  w^th  much 
of  Europe  and  the  United  States,  and  resulted 
in  a  war  with  Uruguay,  Brazil  and  Argentine. 
In  addition  to  this  internal  strife  developed  in 
which  assassins,  murderers  and  executioners 
played  their  parts.  When  Lopez  was  finally 
killed  and  his  power  gone,  Paraguay's  popula- 
tion, according  to  Dawson,  the  well-known 
historian,  had  decreased  from  ^'1,300,000  to 
a  little  over  200,000,  only  about  29,000  being 
men  and  90,000  children  under  fifteen  years 
of  age."  There  were  five  women  to  one  man. 
As  a   result  of  this  devastation  the  country 


PARAGUAY  59 

never  has  revived.  Recent  revolutions  have 
set  it  back  still  further  and  whatever  of  good 
may  come  to  this  benighted  land  must  be  writ- 
ten in  the  future  tense. 

Paraguay  is  almost  an  inland  country,  hav- 
ino;  but  one  outlet  to  the  sea  in  the  Parana 
River.  Its  196,000  square  miles  of  territory 
is  bounded  on  the  north  by  Brazil  and  Bolivia; 
on  the  west  and  south  by  Argentine,  and  on  the 
east  by  Argentine  and  Brazil.  The  Paraguay 
River  runs  directly  through  its  territory  from 
south  to  north  dividing  it  into  two  sections, 
Western  Paraguay,  or  the  Chaco,  and  East- 
ern Paraguay.  It  is  well  watered  with  many 
small  streams,  while  toward  the  north  and  east 
are  mountain  chains. 

The  climate  of  Paraguay  is  so  equable  that 
the  country  is  sometimes  called  the  "Sanitar- 
ium." The  two  seasons  are  the  rainy  and  the 
dry.  It  never  snows  in  this  land  and  flowers 
in  great  variety  and  a  riot  of  color  bloom  con- 
stantly. The  southern  two-thirds  are  in  the 
Temperate  Zone,  the  northern  one-third  in  the 
Tropic  Zone. 


6o      SELLING  LATIN  AMERICA 

The  population  is  estimated  at  800,000,  over 
100,000  of  which  are  wild  Indians,  the  re- 
mainder being  largely  of  mixed  blood,  negro 
predominating.  There  have  been  some  spor- 
adic attempts  to  encourage  immigration, 
which  have  not  resulted  in  any  great  move- 
ment in  this  direction,  owing  to  the  instability 
of  the  government  and  the  backward  condi- 
tion of  the  people  as  well  as  to  the  general 
isolation  of  the  country. 

Travel  in  Paraguay  is  most  primitive. 
There  are  few  roads  and  most  of  the  com- 
merce is  carried  by  bullock  carts  on  almost  im- 
passable trails  or  by  pack  train  over  narrow 
paths.  But  one  railway,  having  a  total  length 
of  about  250  miles,  ekes  out  a  homeopathic 
existence,  running  from  Asuncion,  the  capital, 
to  Ville  Encarnacion.  Many  railways  must 
be  built  to  open  the  country.  One  can  go  by 
rail  from  Asuncion  to  Buenos  Aires  in  two 
days,  the  trip  requiring  a  ferryage  from  Posa- 
das to  Ville  Encarnacion.  The  Trans-Para- 
guayan Railway  now  in  course  of  construction 
will  do  much  to  develop  the  country.     Com- 


5     3,     3       ' 


3  }  3  ) 


J       >  5  > 


15  J 

1      >         ■)  > 


'  p  '     )      >  >       a    3  J   ' 


Interior  of  a  gentlemen's  hat  store, 
Asuncion,  Paraguay 


A  country  store  in  Colombia 


PARAGUAY  6i 

munication  with  the  outside  world  via  Monte- 
video or  Buenos  Aires  is  maintained  by  river 
steamers,  requiring  from  five  days  to  a  week 
to  make  the  trip  to  Asuncion,  which  is  about 
iioo  miles  from  the  Argentine  capital. 

From  Asuncion  it  is  possible  to  go  into  the 
interior  or  even  to  Brazil,  on  light-draft 
steamers,  the  Guyara  Falls,  1300  miles  above 
the  capital,  stopping  navigation  of  the  Parana 
River  at  this  point. 

The  Paraguay  River  is  navigable  for  vessels 
of  twelve-foot  draft  to  Asuncion  and  for  smal- 
ler vessels  700  miles  farther. 

Most  of  the  commerce  of  Paraguay  is  car- 
ried in  lighters  drawn  by  tugs,  and  these  emis- 
saries of  trade  are  to  be  met  on  all  the  rivers 
and  waterways  of  this  country. 

There  are  several  lakes,  navigable  for  small 
craft,  but  of  no  importance  from  a  commercial 

standpoint. 

While  both  the  climate  and  the  soil  warrant 
one  in  stating  that  Paraguay  is  susceptible  of 
high  agricultural  development,  little  has  been 
done  in  this  regard,  outside  of  locally  produc- 


62      SELLING  LATIN  AMERICA 

ing  the  few  vegetables  and  fruits  required  for 
home  consumption.  Sugar-cane,  tobacco, 
tropical  fruits  and  cotton  would  thrive  in  this 
country.  Each  one  of  these  staples  has  been 
successfully  raised,  the  cotton  being  something 
like  our  own  famous  Sea  Island  brand. 

A  business,  small  in  size,  yet  of  great  im- 
portance, and  restricted  to  this  locality,  is  the 
production  of  oil  of  petitgrain,  a  form  of 
orange  perfume,  much  in  use  in  European 
perfume  houses  as  a  base  for  toilet  and  flavor- 
ing extracts.  The  essential  oil  is  obtained 
in  the  most  primitive  manner  and  is  always  in 
great  demand. 

A  lace  peculiar  to  the  country,  called 
''nanduti"  or  spider  lace,  is  made  by  native 
women,  and  if  properly  commercialized 
might  develop  into  a  paying  trade. 

The  growing  and  curing  of  ''Yerba  Mate," 
a  native  tea,  used  extensively  in  Paraguay, 
Uruguay,  Brazil,  Argentine  and  Chile,  yields 
considerable  income,  but  is  never  destined  to 
become  an  article  of  great  international  com- 
merce.    The  plant  or  shrub  grows  wild.     The 


PARAGUAY  63 

crop    amounts    to    about    18,000,000    pounds 

yearly. 

Quebracho,  a  red-colored  wood,  rich  in 
tannin,  is  indigenous  to  the  country.  It  is 
used  for  furniture  and  railroad  ties  and  the 
extract  made  from  it  is  employed  in  tanning 
leather.  In  one  year,  over  $4,000,000  of  this 
wood  alone  was  imported  to  the  United  States, 
much  of  it  being  used  for  paving  blocks. 

Thousands  of  acres  of  cabinet  and  other 
commercial  woods  are  to  be  found  in  the  for- 
ests, but  are  without  value,  owing  to  their  iso- 
lation and  lack  of  means  of  transportation  to 
get  them  to  the  markets. 

The  country  has  some  ore  deposits.  The 
principal  ones  are  copper,  mercury,  man- 
ganese and  iron.  They  cannot  be  developed 
on  account  of  their  remote  location. 

It  therefore  follows  that  the  chief  indus- 
tries of  Paraguay  for  years  to  come  will  be  in 
the  production  of  raw  materials  and  in  the 
raising  of  cattle  for  which  its  well-watered 
plains  are  admirably  adapted.  It  has  now 
about  6,000,000  head  of  cattle  and  sheep  and 


64     SELLING  LATIN  AMERICA 

two  slaughter-houses,  killing  about  40,000  an- 
nually. There  are  two  large  American  com- 
panies engaged  in  the  cattle  industry;  also  one 
big  German  firm  in  the  same  line. 

Paraguay  has  not  invited  capital  and  in- 
ducements of  this  nature  need  not  be  expected 
for  some  time. 

While  supposedly  on  a  gold  basis,  money  of 
this  metal  exists  only  as  a  fiction.  The  incon- 
vertible paper  peso  has  a  fluctuating  value, 
being  at  times  as  low  as  two  and  a  half  cents 
U.  S.  gold,  and  as  high  as  five  cents  U.  S. 
gold,  according  to  the  stability  of  the  gov- 
ernment and  local  commercial  conditions. 

Credits  should  be  extended  with  the  great- 
est caution. 

In  1913  Paraguay  exported  $5,462,000 
worth  of  materials,  chiefly  fruit  to  Argentine, 
as  well  as  yerba  mate,  timber,  hides,  dried 
beef,  quebracho,  lace,  and  tobacco.  Most  of 
her  exports  were  taken  by  the  neighboring  re- 
publics, and  by  them  re-shipped  to  the  markets 
of  the  world.  No  exports  to  the  United 
States  for  1913  are  given,  but  in  191 2  they 


PARAGUAY  65 

amounted  to  only  $593.  Germany  is  her 
largest  European  creditor,  last  year  taking 
over  $1,198,686  of  her  products. 

Paraguay  in  1913,  imported  $7,671,551  in 
textiles,  foods,  hardware,  fancy  and  toilet 
goods,  shoes,  hats,  liquors,  drugs,  clothes,  steel 
and  iron,  of  which  amount  the  United  States 
contributed  $181,367  as  against  Germany's 
$989,898  and  England's  $963,418. 

Commercial  travelers  are  supposed  to  pay 
a  duty  proportionate  to  the  business  they  do. 
As  a  matter  of  fact,  no  effort  is  made  to  collect 
this  tax  and  the  local  merchant  generally  pro- 
tects the  traveler  visiting  him  from  such  ex- 
ploitation. 

The  following  cities  should  be  visited : 

Population 

Asuncion  60,000 

Villa   Rica    35,ooo 

Concepcion    25,000 

Encarnacion    10,000 

Owing  to  its  situation  it  is  necessary  in  order 
to  reach  Paraguay  to  go  by  train  or  boat  from 
Buenos  Aires,  or  by  boat  from  Montevideo; 


66     SELLING  LATIN  AMERICA 

the  journey  from  Buenos  Aires  is  the  quickest 
and  most  comfortable. 

All  goods  intended  for  Asuncion  or  other 
points  in  the  country  are  trans-shipped  at 
either  Buenos  Aires  or  Montevideo,  arrange- 
ments for  which  can  be  made  with  the  lines 
running  from  Europe  or  the  United  States 
direct  to  either  of  these  ports.  Or  your  cus- 
tomer in  Paraguay  will  instruct  you  to  ship  his 
order  through  some  agent  whom  he  will  spec- 
ify in  his  shipping  instructions,  who  will  at- 
tend to  the  routine  detail  to  forward  the  con- 
signment. 


VI 

CHILE 

After  Pizarro  had  conquered  Peru  he  dis- 
patched Diego  de  Almagro  with  an  army,  in- 
structing him  to  explore  and  take  the  territory 
to  the  south,  or  what  is  now  Chile.     He  was 
unable    to    accomplish    the    task.     In    1540 
Pizarro  sent  another  expedition  under  Pedro 
Valdivia,   whom   fortune    favored   and   who 
penetrated  to  what  is  now  the  city  of  Santiago, 
which  he  founded  in  1541.     For  more  than 
100  years  the  war-like  Araucanian   Indians 
made  repeated  attacks  on  settlers  in  this  terri- 
tory, the  Spaniards  having  great  difficulty  in 
conquering  them.     A  treaty  of  peace  was  con- 
cluded in  1640. 

When  the  revolutionary  movement  in  South 
America  started  against  Spain,  Chile  on  Sep- 
tember 18,  1 8 10,  declared  her  independence, 
and  became  the  scene  of  much  fighting,  finally 

67 


68      SELLING  LATIN  AMERICA 

on  April  5,  18 18,  defeating  forever  Spanish 
power  and  becoming  absolutely  independent. 

A  republican  form  of  government  w2ls 
adopted,  the  executive  power  being  vested  in 
a  President,  and  the  legislative  in  two  houses, 
a  Senate  and  a  Chamber  of  Deputies. 

The  Republic  of  Chile  has  292,580  square 
miles,  with  a  ragged  coast  line  of  2,627  i^i^^s, 
and  varies  in  width  from  90  to  248  miles.  It 
is  bordered  on  the  north  by  Peru,  the  east  by 
Bolivia  and  Argentine,  the  south  and  west  by 
the  Pacific  Ocean. 

Two  almost  parallel  ranges  of  mountains, 
the  Cordillera  de  la  Costa  and  the  Andes,  run 
from  north  to  south,  with  a  valley  over  500 
miles  long  and  40  wide  spread  between  them. 
In  this  chain  of  mountains  are  more  than  30 
extinct  volcanoes  from  11,700  to  21,340  feet 
in  height. 

Owing  to  its  extreme  length  Chile  possesses 
many  climates.  To  the  north  it  is  dry  and 
hot,  the  central  portion  being  decidedly  tem- 
perate with  changing  seasons,  almost  like  Cali- 
fornia, while  in  the  south  the  temperature  gets 


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o 

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3 

'rt 


CHILE  69 

lower,  and  rains  increase.  To  the  extreme 
south  there  is  much  snow  and  cold  with  but 
little  vegetation. 

There  are  practically  no  negroes  in  the 
3,500,000  of  Chile's  population.  Some  writ- 
ers estimate  that  25  per  cent,  of  the  inhabitants 
are  Germans,  or  of  German  descent,  this  na- 
tion having  many  business  men  and  large  col- 
onies in  the  Republic,  especially  toward  the 
south  and  around  Valdivia.  Perhaps  50  per 
cent,  are  descendants  of  the  Araucanian  In- 
dians by  the  early  Spanish  explorers.  There 
is  a  large  percentage  of  English;  it  is  esti- 
mated that  in  Valparaiso,  a  city  of  250,000, 
there  are  at  least  20,000  Anglo-Saxons.  The 
French  and  Italian  colonies  are  also  quite 
numerous. 

Chile  ranks  third  in  South  America  in 
her  railways,  possessing  a  total  of  3800  miles, 
nearly  2000  of  which  are  owned  by  the  Gov- 
ernment. A  longitudinal  railway,  designed 
to  run  practically  the  length  of  the  country 
— 2132  miles — from  north  to  south,  is  in  proc- 
ess of  construction.     It  will  be  connected  with 


70      SELLING  LATIN  AMERICA 

the  coast  and  the  hinterland  by  roads  cross- 
ing it  at  right  angles,  and  is  designed  to  de- 
velop the  entire  country  and  to  be  of  strategic 
value  in  transporting  troops.  Two  new  trans- 
Andean  roads  are  contemplated  in  addition 
to  the  one  now  running  from  Los  Andes  to 
Mendoza,  one  to  operate  about  300  miles 
north  of  Santiago — the  other  to  cross  400  miles 
to  the  south  of  the  capital.  Other  lines  from 
the  smaller  ports  to  the  longitudinal  road  are 
proposed,  in  all  over  3000  miles  being  pro- 
jected. Of  the  roads  maintained  by  the  gov- 
ernment, it  might  be  said  that  they  are  run 
at  a  great  annual  loss,  a  condition  which 
may  operate  materially  against  the  country's 
prosperity  at  some  near  date.  Many  of  the 
privately  owned  roads  are  used  only  in  con- 
nection with  the  nitrate  industry. 

Chile  has  many  small  rivers  varying  from 
25  to  150  miles  in  length  arising  in  the  moun- 
tains and  rushing  to  the  sea.  Most  of  them 
are  dry  a  greater  part  of  the  year^  but  during 
the  rainy  season  become  raging  torrents. 
With  the  exception  of  a  few  in  the  southern 


CHILE  71 

part  of  the  country,  they  are  not  navigable, 
but  by  a  proper  system  of  conserving  and  stor- 
ing their  water  might  be  made  useful  for  gen- 
erating power  or  light. 

Her  extensive  coast  line  gives  Chile  59 
ports  on  the  Pacific,  most  of  which  are  open 
roadsteads  and  at  certain  times  of  the  year 
positively  dangerous,  loading  and  unloading 
of  vessels  being  done  by  means  of  lighters, 
ships  being  obliged  to  lie  from  one  to  two 
miles  off  the  land.  The  principal  ports  from 
north  to  south  in  the  order  named  are  Arica, 
Pisagua,  Iquiqui,  Tocopilla,  Antofagasta, 
Taltal,  Caldera,  Carrizal,  Coquimbo,  Val- 
paraiso, Talcahuano,  Coronel,  Valdivia, 
Puerto  Monte,  Ancud,  and  Punta  Arenas,  the 
most  southerly  city  on  this  continent  and  one 
of  the  big  fur  markets  of  the  world. 

Chile  is  to-day  spending  millions  of  dollars 
on  the  modernization  of  her  leading  ports  so 
as  to  properly  safeguard  life  and  property, 
but  it  will  be  years  before  this  work  is  finished. 
Primarily  the  wealth  of  Chile  comes  from 
her  nitrate  beds  and  her  mining  possibilities. 


72      SELLING  LATIN  AMERICA 

There  are  about  $150,000,000  invested  in  the 
nitrate  industry  alone — $55,000,000  being 
English  and  $51,000,000  local.  American 
capital  is  little  represented  in  this  line.  The 
exports  in  19 13  amounted  to  60,500,000  quin- 
tals, a  quintal  being  101.41  pounds;  the  value 
in  money  was  $98,239,569.  Iodine  is  one  of 
the  by-products  in  the  manufacture  of  nitrate, 
and  is  controlled  by  a  combination  or  trust, 
$1,876,277  worth  being  exported  last  year,  the 
United  States  taking  183  tons,  England  65 
tons  and  the  remainder  of  Europe  264  tons. 

The  nitrate  beds  run  a  distance  of  450  miles 
south  of  the  Camarones  River,  at  an  altitude 
of  4000  to  5000  feet  and  from  10  to  20  miles 
inland.  Many  theories  have  been  advanced 
as  to  these  deposits,  the  one  generally  accepted 
being  that  these  fields  were  once  the  bottom  of 
some  sea  elevated  by  a  titanic  upheaval.  The 
beds  vary  in  width  from  a  half  to  five  miles, 
and  the  "caliche"  or  strata  of  earth  bearing 
the  nitrate  is  usually  covered  by  sand  and  dirt 
varying  from  a  few  inches  to  10  feet.  This 
is  blown  out  by  dynamite,  separated  by  wash- 


CHILE  73 

ing  and  boilings  from  foreign  matter,  then 
bagged  and  shipped.     A  more  desolate  spot 
than  a  nitrate  ''officina,"  as  these  reduction 
plants  are  called,  would  be  hard  to  imagine. 
No  trees  or  vegetation  are  to  be  seen  and  even 
v^ater  has  to  be  carried  for  miles  in  cars  for 
operating  the  machinery  and  for  other  uses. 
Authorities  differ  as  to  the  extent  of  the  de- 
posits, some  alleging  they  will  be  worked  out 
in  20  years,  while  others  claim  there  is  suffi- 
cient supply  available  for  200  years.     Nitrate 
is  used  extensively  in  the  arts,  for  manufactur- 
ing gunpowder  and  explosives  and  for  a  fer- 
tilizer in  agriculture. 

Copper  is  found  in  great  profusion,  $7,947)" 
307  worth  being  exported  last  year.  One  of 
the  largest  copper  mines  is  owned  by  the 
Braden  Copper  Company,  an  American  con- 
cern. In  1913  its  average  daily  production 
was  30  tons  of  bar  copper.  Machinery  is  be- 
ing installed  which  is  intended  to  double  this 
output.  Chile  at  one  time  contributed  one- 
third  of  the  world's  supply  of  Ais  metal  and 
mineralogists  state  that  there  are  yet  great  bod- 


74     SELLING  LATIN  AMERICA 

ies  of  high  grade  ore  awaiting  the  discoverer. 

Coal  is  found  throughout  the  south  of  Chile, 
one  coal  field  alone  being  estimated  to  contain 
1,862,000,000  tons.  Over  $7,500,000  is  in- 
vested in  this  enterprise. 

Iron  ore  of  excellent  quality  and  freeness 
from  sulphur  is  found  in  large  quantities.  An 
American  company  is  largely  interested  in  de- 
veloping this  market,  and  contemplates  in- 
vesting $6,000,000  in  their  property. 

There  are  silver  and  gold,  deposits  of  salt 
and  borax,  as  well  as  cobalt,  nickel,  mercury 
bearing  ores,  tungsten,  zinc,  graphite,  sulphur 
and  alum.  All  of  these  await  proper  devel- 
opment as  they  exist  in  paying  quantities. 

Much  of  the  territory,  which  resembles 
California  in  scenery,  climate  and  formation, 
is  given  over  to  agriculture.  Over  600,000 
tons  of  wheat  were  harvested  in  191 2  with 
71,000  tons  of  barley,  50,000  tons  of  oats  and 
40,000  tons  of  corn.  Some  authorities  claim 
Chile  to  be  the  fourth  largest  wine  producing 
country  of  the  world,  most  of  its  vintage  being 
consumed  locally. 


CHILE  75 

Stock  raising  is  increasing,  especially  to  the 
south,  where  sheep  are  profitably  grazed. 
The  latest  census  gives  the  number  of  cattle 
at  1,900,000,  sheep  5,000,000  and  goats  300, 
000.  Much  wool  from  three  to  four-inch 
staple  is  produced,  last  year  20,563,833  pounds 
being  exported.  Dairying  is  rapidly  grow- 
ing. Bee  culture  is  becoming  a  permanent  in- 
dustry, there  being  90,000  hives  in  Chile  in 
191 3.     Much  honey  and  wax  are  exported. 

There  are  millions  of  acres  of  virgin  forests 
of  valuable  hard  woods  in  the  south,  the  north 
being  a  barren,  treeless  country.  The  chief 
trees  are  the  Chilean  oak,  the  rauli,  elm,  cy- 
press, pine,  cherry,  laurel  and  of  late  the 
eucalyptus  is  being  propagated  extensively. 

Some  industries  such  as  shoe  factories,  can- 
neries, breweries,  distilleries,  sugar  refineries, 
cracker  bakeries,  and  the  like  exist  but  their 
products  are  for  local  consumption. 

The  fruits  of  Chile,  such  as  the  cherry, 
peach,  pear,  apple,  nectarine,  plum,  apricot 
and  melon,  are  the  equal  of  ours.  Inasmuch 
as  the  seasons  here  are  reversed,  these  luscious 


76     SELLING  LATIN  AMERICA 

fruits  would  reach  our  markets  during  winter, 
and  this  could  be  developed  into  a  profitable 
trade. 

Chile  exports  nitrate  of  soda  (nitrate),  cop- 
per, iodine,  wheat,  borate  of  lime,  iron,  gold, 
silver,  wool,  hides,  woods,  honey,  and  wax. 

She  imports  bottles,  cars  and  rolling  stock, 
cement,  cotton  goods,  glassware,  iron  and  steel 
►  manufactures,  such  as  wire,  nails,  pipes,  cor- 
rugated iron,  hardware,  tools,  locomotives, 
mining  and  agricultural  machinery,  mineral 
waters,  paper,  petroleum,  rice,  sacks,  tinned 
salmon,  thread,  tea,  woolen  goods,  shoes,  and 
hats. 

Chilean  money  is  unstable  and  fluctuates 
from  day  to  day,  the  paper  peso  or  dollar  be- 
ing worth  from  17  to  36  cents,  according  to 
variations  in  exchange.  A  gold  peso  exists 
fictitiously  for  trade  purposes,  being  estimated 
at  18  pence  or  36  cents  U.  S.  gold.  When  this 
mark  ^'$"  is  followed  by  the  word  oro  the 
amount  is  understood  to  be  gold.  If  however 
this    abbreviation   is   used   "m/c"   it  means 


CHILE  77 

^'moneda    corriente"    or    the    paper    money. 

Chile  has  for  a  long  time  talked  of  chang- 
ing its  currency  and  making  it  staple.  The 
sooner  this  is  done  the  better  for  the  country. 
Such  a  movement  has  been  greatly  retarded  by 
men  who  have  made  money  due  to  the  fluctua- 
tions in  currency. 

Both  the  English  and  Germans  have  large 
interests  here,  and  as  a  consequence  do  the 
bulk  of  the  exporting  and  importing  business 
with  Chile.  Imports  in  1913  were  $122,075,- 
994  as  against  $139,878,201  of  exports.  India 
shipped  to  Chile  $3,500,000  worth  of  jute  bags 
for  nitrate  in  1913,  and  stands  seventh  in  the 
list  of  countries  sending  goods  here,  the  United 
States  being  third  with  $16,806,341  to  its 
credit  as  against  England's  $38,616,886  and 
Germany's  $33,189,070. 

Commercial  travelers  are  not  required  to 
pay  a  license.  The  authorities  are  very  lib- 
eral about  admitting  samples. 

The  following  cities  are  worth  visiting  for 
trade  purposes: 


78      SELLING  LATIN  AMERICA 

Population 

Santiago 4CX),ooo 

Valparaiso 250,000 

IquiquI    > . .  .  50»000 

Concepcion 50,000 

Chillon    , 45,000 

Antofagasta    35)000 

Punta  Arenas 20,000 

Talcahuano 16,000 

Valdivia    16,000 

Coquimbo I2,000 

Chile  may  be  reached  by  taking  any  line 
from  New  York  to  Buenos  Aires,  then  cross- 
ing via  the  Trans-Andean  road  to  Santiago  or 
Valparaiso,  or  by  any  line  of  steamers  sailing 
for  Colon,  thence  via  train  to  Panama  from 
where  English,  German,  Chilean  or  Peruvian 
steamers  sail  weekly,  touching  at  all  the  lead- 
ing coast  ports.  There  are  also  English  and 
German  ships  direct  from  Europe,  which  pass 
through  Smythe  Channel  on  the  southwest 
coast  of  Chile  and  touch  at  all  its  ports  on 
both  the  outward  and  return  voyage. 


VII 

BOLIVIA 

Bolivia,  the  fourth  largest  of  the  South 
American  republics,  extending  over  an  area 
of  708,195  square  miles,  is  without  a  seacoast, 
having  lost  control  of  her  ports  on  the  Pacific 
Ocean  as  a  result  of  the  war  between  Peru 
and  Chile.  This  country  occupies  as  much 
territory  as  all  of  the  states  east  of  the  Missis- 
sippi, excepting  those  of  New  England,  or  is 
as  large  as  the  combined  areas  of  California, 
Washington,  Oregon,  Idaho,  Arizona,  Utah 
and  Nevada,  and  is  bounded  on  the  north  and 
east  by  Brazil,  the  south  by  Paraguay,  Argen- 
tine and  Chile,  while  her  western  boundary  is 
made  up  by  Peru  and  Chile. 

After  Pizarro  discovered  Peru,  he  organ- 
ized an  expedition,  explored  Bolivia,  and  an- 
nexed it  to  the  Spanish  crown,  which  con- 
trolled its  destinies  until  all  of  Latin  America 

79 


8o      SELLING  LATIN  AMERICA 

revolted  against  the  home  government.  In 
1809  the  Spanish  authorities  vs^ere  deposed  and 
independence  declared  in  1825,  as  a  result  of 
the  Battle  of  Ayacucho,  fought  on  Dec.  9, 
1824,  when  the  Spanish  forces  were  totally 
defeated. 

Simon  Bolivar,  the  hero  of  the  rebellion 
against  Spain,  drafted  its  constitution  v^hich 
provided  for  a  President,  tv^o  Vice-Presidents, 
and  two  houses  of  Congress — composed  of  a 
Senate  and  a  Chamber  of  Deputies. 

Although  Bolivia  is  entirely  within  the 
Tropic  Zone,  it  is  blessed  with  a  variety  of 
climates,  due  chiefly  to  its  altitude.  There 
are  two  seasons,  the  rainy  from  December  to 
May  and  the  dry  covering  the  remainder  of 
the  year. 

Owing  to  some  gigantic  convulsion  of  Na- 
ture, ages  ago,  what  evidently  was  the  bottom 
of  the  ocean  was  forced  upward,  and  now 
forms  an  enormous  plateau  over  500  miles  in 
length,  covering  more  than  60,000  square 
miles,  at  an  average  altitude  of  12,000  feet. 
This  is  a  comparatively  barren  stretch  of  land 


BOLIVIA  8i 

with  little  vegetation,  but  is  extremely  rich 
in  mineral  deposits. 

Running  north  and  south,  and  at  the  east 
and  west  sides  of  this  vast  plateau  are  two 
ranges  of  the  Andes,  the  distance  between  them 
being  about  85  miles.  In  addition  to  these 
main  ranges  are  many  others  which  criss-cross 
the  country  in  numerous  directions.  In  but 
few,  if  any,  countries  of  the  world  is  there  to 
be  found  such  a  wealth  of  scenery,  Bolivia 
possessing  three  of  the  highest  peaks  in  this 
hemisphere,  namely  lUampu,  Sorata  and  Illi- 
mani,  the  sentinel  of  La  Paz,  whose  snow- 
covered  peak  towers  into  space  22,500  feet. 

As  may  be  surmised  the  climate  in  the  pla- 
teau and  mountain  regions  is  cool  and  invigor- 
ating most  of  the  year,  but  extremely  warm  in 
the  summer,  while  as  the  land  descends  toward 
Brazil  and  the  upper  Amazon  region  it  be- 
comes milder  until  it  reaches  tropic  warmth. 
On  account  of  the  high  altitude  of  Bolivia, 
the  traveler  generally  has  attacks  of  what  is 
known  locally  as  ''puno"  or  '^sirroche" — or  in 
plain  English,  mountain  sickness,  owing  to  the 


82      SELLING  LATIN  AMERICA 

rarity  of  the  atmosphere.  While  it  Is  exceed- 
ingly unpleasant  and  may  cause  palpitation  of 
the  heart,  shortness  of  breath,  bleeding  at  the 
nose  and  ears,  and  other  disagreeable  symp- 
toms, it  seldom  results  fatally.  Rest  until  ac- 
climated and  the  use,  under  a  physician's  di- 
rection, of  some  heart  stimulant,  are  all  that 
is  necessary  to  restore  the  patient  to  his  normal 
state.  Stout  persons  are  apt  to  suffer  more 
than  others  and  should  exert  themselves  as 
little  as  possible.  Compressed  oxygen  is  car- 
ried in  most  of  the  passenger  trains  to  give 
immediate  relief  in  case  of  danger  from  moun- 
tain sickness,  the  train  crew  being  instructed 
as  to  its  administration. 

The  population  of  Bolivia  is  estimated  at 
2,300,000,  but  no  census  has  ever  been  taken, 
and  it  is  doubtful  if  it  has  more  than  1,500,000 
inhabitants.  Fully  fifty  per  cent,  of  its  peo- 
ple are  docile,  full-blooded  Indians,  living 
the  most  primitive  life  and  speaking  their 
own  dialect  with  a  few  head  men  familiar 
with  Spanish,  w^hich  is  the  official  or  state 
tongue.     The    Beni,    or    white    Indians    of 


BOLIVIA  83 

Bolivia,  are  a  rather  warlike  race  and  have 
maintained  their  tribal  laws,  the  control  of 
their  lands  and  customs,  independent  of  all  at- 
tempts to  subjugate  them.  In  fact,  the  Boliv- 
ians stand  in  awe  of  them.  There  are  about 
500,000  "cholos,"  the  native  term  for  half- 
castes  or  mixed  breeds,  250,000  whites  of 
Spanish  descent  and  perhaps  10,000  foreign- 
ers,— that  is  Americans  and  Europeans  en- 
gaged in  business. 

Bolivia  has  been  the  scene  of  a  remarkable 
railway  development  encouraged  by  the  gov- 
ernment. There  are  to-day  about  900  miles 
of  road  in  actual  operation,  about  400  miles 
in  the  process  of  construction  and  nearly  2,500 
miles,  plans  and  estimates  for  the  completion 
of  which  are  under  consideration. 

These  railways  maintain  three  arteries  of 
commerce  with  the  Pacific  coast  from  the  in- 
terior, and  reach  the  ocean  via  Lake  Titicaca 
at  MoUendo,  Peru;  at  Antofagasta,  and  also 
at  Arica  in  Chile,  the  last  named  being  the 
shortest  and  most  direct  route  from  the  coast 
to  the  capital  at  La  Paz,  a  distance  of  274 


84      SELLING  LATIN  AMERICA 

miles,  and  only  recently  completed,  requiring 
about  14  hours  for  the  journey.  To  go  to  La 
Paz  via  Mollendo,  or  via  Antof  agasta  is  much 
longer  in  distance,  requiring  two  days'  time, 
but  repays  the  traveller  in  the  magnificence  of 
the  scenery  encountered  all  along  the  line. 

Roads  are  in  process  of  construction  from 
Potosi  to  Sucre,  in  order  to  afford  an  outlet 
for  the  products  of  the  mines  located  in  this 
vicinity,  and  from  Uyuni  to  Tupiza  near  the 
border  line  of  Argentine,  so  that  direct  com- 
munication can  be  had  with  this  country  as 
well  as  Chile  and  Peru.  Other  roads  are  be- 
ing built  from  Oruro  to  Banderani  and  Oruro 
and  Cochabamba,  also  from  La  Paz  to 
Yungas,  from  Yungas  to  Puerto  Panda  and 
from  Cochabamba  to  Chimon.  The  govern- 
ment also  intends  building  roads  from  Ya- 
cuiba  to  Santa  Cruz,  and  thence  to  Puerto 
Saurez.  Connecting  lines  will  be  built  to  the 
famous  Mamo re- Madeira  R.  R.  in  Brazil. 

There  is  a  perfect  net  work  of  rivers  in 
Bolivia,  located  chiefly  in  the  northeast  and 
southeastern    sections,    many    of    which    are 


BOLIVIA  85 

navigable  for  light  draught  vessels  and  light- 
ers. It  is  estimated  that  the  Paraguay,  Beni, 
Itenes,  Mamore,  Pilcomayo,  Paragua,  and 
other  streams  give  a  total  water  transportation 
of  more  than  11,000  miles.  These  streams, 
however,  can  be  used  more  advantageously  as 
commerce  carriers  toward  Brazil,  Paraguay 
and  Argentine  than  to  the  West  Coast  coun- 
tries. Various  projects  have  been  suggested 
for  dredging  them  and  providing  locks  so  as 
to  develop  the  territory  drained  by  them,  but 
it  is  doubtful  if  the  next  century  will  see  this 
work  started,  although  it  is  feasible. 

Lake  Titicaca  is  the  highest  body  of  navi- 
gable water  in  the  world,  the  steamers  which 
operate  on  it  having  been  brought  from  Eu- 
rope in  sections  and  erected  on  its  banks.  It 
is  one  of  the  largest  lakes  in  this  hemisphere, 
covering  an  area  of  more  than  4,000  square 
miles  and  being  160  miles  long  and  30  wide. 
While  the  steamers  which  ply  on  its  surface 
carry  passengers,  they  also  bring  all  of  the 
freight  into  or  leaving  the  country  via  the  port 
of  Mollendo  in  Peru. 


86      SELLING  LATIN  AMERICA 

Bolivia  may  rightly  be  called  the  mineral 
storehouse  of  the  world,  for  locked,  within  the 
heart  of  her  many  mountains  are  untold  riches, 
the  tons  which  she  has  contributed  to  the  uni- 
verse being  microscopic  in  proportion  to  what 
remains.  Her  inexhaustible  dried  lakes  of 
borax  and  salt,  glistening  like  snow  in  the  pure 
air  of  the  high  elevation,  have  been  scraped 
for  centuries  without  apparently  reducing 
their  supply.  There  are  many  rich  deposits 
of  gold,  silver,  copper,  tin,  antimony,  bismuth, 
borax,  zinc,  wolfram  and  coal. 

In  the  production  of  tin,  Bolivia  ranks  sec- 
ond, the  chief  producer  being  the  Malay  Pen- 
insula. Tin  forms  about  70  per  cent,  of  the 
total  export  of  Bolivia,  amounting  in  value 
to  over  $23,000,000,  Great  Britain  taking 
about  90  per  cent,  of  the  output  of  the  mines 
and  selling  it  to  the  other  nations  of  the  world. 
There  are  yet  enormous  unworked  deposits 
of  this  metal  in  this  land. 

Bolivia  is  one  of  the  largest  bismuth  pro- 
ducing countries  of  the  world  and  the  third  in 
the  production  of  copper,  and  is  rich  in  anti- 


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Lake   Titicaca  at  Puno,   Peru,    with  native    balsas  in    the    fore- 
ground.    Balsas,  which  are  made  of  reeds  lashed  together, 
are  used  for  carrying  freight  and  passengers 


BOLIVIA  87 

mony  and  wolfram.  In  191 2,  the  latest  avail- 
able authentic  data,  she  exported  the  follow- 
ing amount  of  metals : 

Antimony     $        26,615 

Bismuth   784,183 

Copper 1,311,156 

Gold   23,039 

Silver 1,676,704 

Tin 23,289,732 

Wolfram    ,. 1 14,847 

Zinc 129,243 

If  the  forests  of  Bolivia  as  well  as  the  terri- 
tory sloping  toward  Brazil  were  more  accessi- 
ble, much  of  value  would  be  added  to  its  prod- 
ucts. This  land  is  especially  adapted  for 
grazing  and  agriculture  as  well  as  the  growth 
of  medicinal  plants  and  trees. 

In  1912,  Bolivia  exported  rubber  to  the 
value  of  over  $6,000,000. 

It  gives  to  the  pharmacopoeia  the  following 
drugs:  aconite,  arnica,  belladona,  some  cam- 
phor, cocaine,  digitalis,  ipecac,  jalap,  quinine, 
quassia,  sarsaparilla,  tamarind,  tolu  and  valer- 
ian. 

Cabinet  woods,  such  as  ebony,  mahogany, 


88      SELLING  LATIN  AMERICA 

rosewood,  satinwood  and  cedar  are  to  be  found 
in  great  profusion.  Fruits  of  the  tropical  and 
temperate  zones  flourish.  Coffee  and  cocoa 
are  largely  grown. 

Bolivia  is  one  of  the  few  countries  of  the 
world  without  a  national  debt,  a  remarkable 
condition  of  affairs,  more  especially  for  a 
Latin  American  country,  and  its  monetary 
system  is  on  a  gold  basis,  the  unit  being  the 
boliviano,  worth  about  39  cents  in  our  cur- 
rency. 

English  capital  is  largely  invested  in  the 
various  mines  and  railways  but  the  greater 
portion  of  the  mercantile  business,  especially 
in  the  crude  drug  line,  is  in  the  hands  of  Ger- 
mans, who  shipped  to  the  Fatherland  over 
83,000  pounds  of  the  100,000  pounds  of  qui- 
nine exported  last  year. 

In  1913  Bolivia  exported  tin,  rubber,  silver, 
copper,  bismuth,  cocoa,  wolfram,  zinc,  lead, 
hides,  alpaca-wool,  medicinal  and  crude  drugs 
to  the  value  of  $36,551,390.  Her  imports  dur- 
ing the  same  time  were  $20,600,000,  compris- 
ing iron,  steel  and  railway  building  materials. 


BOLIVIA  89 

textiles,  machinery,  arms  and  ammunition, 
foodstuffs,  toilet  goods,  glass  ware,  and  medi- 
cines. 

Bolivia  is  one  of  the  countries  where  the 
travelling  salesman  is  sure  to  be  obliged  to  pay 
a  tax;  the  porters,  hotel  employes  and  others 
assisting,  on  a  commission  basis,  of  course,  the 
person  who  has  this  concession.  The  fee 
which  amounts  to  about  $115  can  often  be 
''side-stepped"  by  arrangement  with  the  local 
merchant  with  whom  you  may  desire  to  estab- 
lish a  connection.  Under  no  circumstances 
let  it  be  known  that  you  are  a  travelling  man 
until  you  have  perfected  your  plans  with  re- 
gard to  this  problem. 

The  following  cities  should  be  visited : 

Population 

La  Paz   (the  capital) 85,000 

Cochabamba    35,ooo 

Sucre   30,000 

Potosi    28,000 

Oruro    25,000 

Santa  Cruz 20,670 

Tarija   10,000 

Tupiza    5,000 


90      SELLING  LATIN  AMERICA 

Bolivia  may  be  reached  via  the  three  cities 
referred  to,  namely  Mollendo,  Antofagasta 
and  Arica,  these  places  being  ports  of  call 
for  all  vessels.  Both  the  Peruvian  and  Chil- 
ean steamship  companies,  as  w^ell  as  the  Euro- 
pean lines,  touch  here  also.  It  is  to  be  ex- 
pected that  some  of  the  larger  lines  from  New- 
York  w^ill  arrange  a  service  passing  through 
the  Panama  Canal  and  calling  at  these  places, 
thereby  saving  the  long  trip  around  the  Horn, 
or  the  transshipping  at  Colon  and  Panama. 


\ 


VIII 

PERU 

Recent  archaeological  finds  warrant  some 
authorities  in  claiming  Peru  to  have  been  the 
home  of  a  highly  civilized  and  cultured  people 
25,000  years  before  Christ.     The  race  which 
inhabited  the  land  then  were  the  Chumus,  the 
progenitors  of  the  Incas,  whom  Pizarro  found 
when  his  expedition  arrived  in  Peru  from 
Panama  in  1532.     The  Incas  had  a  socialistic 
form    of    government,   were    able   engineers, 
good  surgeons,  noted  agriculturists  and  really 
a  wonderful  people.     The  treatment  of  this 
docile  and  intellectual  nation  by  the  invading 
Spaniards  is  one  of  the  darkest  pages  of  his- 
tory. 

Francisco  Pizarro  founded  Lima,  the  capi- 
tal of  Peru,  in  1535,  was  appointed  by  the 
Crown  governor  of  the  newly  acquired  terri- 

91 


92      SELLING  LATIN  AMERICA 

tory  and  was  assassinated  in  front  of  his  palace 

in  1541. 

The  great  wealth  which  Peru,  through  her 
rich  mines,  contributed  to  Spain,  warranted 
that  country  in  making  this  possession  a  vice- 
royalty,  the  viceroy  at  one  time  governing  all 
Spanish  possessions  in  South  America  from 
Lima. 

The  movement  for  independence  from 
Spanish  control,  started  early  in  the  last  cen- 
tury, found  many  adherents  in  Peru  and  after 
several  reverses  the  yoke  of  Spain  was  thrown 
ofif  July  28,  1821,  a  congress  organized  in  1822, 
representing  a  republican  form  of  government 
and  the  first  president  inaugurated  in  1823. 

In  1879,  over  a  question  of  boundary  lines, 
Peru  became  involved  in  a  war  with  Chile, 
lasting  five  years,  the  result  being  the  defeat 
of  Peru  and  the  invasion  of  its  capital.  As  a 
consequence,  Peru  ceded  one  of  its  richest 
provinces,  Tarapaca,  outright  to  Chile,  and 
the  territories  of  Tacna  and  Arica  condition- 
ally for  ten  years,  at  the  end  of  which  period  a 
vote  was  to  be  taken  in  these  provinces,  and 


PERU  93 

the  inhabitants  were  to  decide  under  which 
country  they  preferred  to  remain.  The  Chil- 
eans, despite  the  repeated  requests  of  Peru, 
have  failed  to  observe  this  condition  of  the 
peace  treaty  and  these  territories  with  all  their 
wealth  still  are  under  the  control  of  the  con- 
querors. The  methods  employed  by  the  Ger- 
mans in  Alsace-Lorraine  have  been  used  here 
by  Chile,  and  the  chances  are  that  this  district 
will  always  remain  in  the  hands  of  its  present 

governors. 

A  President  and  two  Vice-Presidents,  to- 
gether with  a  legislative  body  of  two  branches, 
a  Senate  and  a  House  of  Representatives,  con- 
trol the  destinies  of  Peru. 

Peru  contains  687,600  square  miles,  and  is 
bounded  on  the  north  by  Ecuador  and  Colom- 
bia, on  the  east  by  Brazil  and  Bolivia,  on  the 
south  by  Chile,  its  western  boundary  being 
washed  by  the  waters  of  the  Pacific  for  its  en- 
tire length  of  1600  miles.  For  purposes  of 
comparison  Peru  covers  as  much  territory  as 
Texas,  Nevada,  Utah,  New  Mexico  and  Ari- 
zona. 


94      SELLING  LATIN  AMERICA 

Three  mountain  ranges  run  through  this 
country  between  which  are  found,  extremely 
fertile  and  productive  plateaus,  the  scene  of 
much  of  the  country's  agricultural  develop- 
ment. The  land  from  the  coast  to  the  foot- 
hills of  the  Andes  is  as  a  rule  barren,  and  were 
it  not  for  the  Humboldt  Current  which  runs 
close  to  the  shore  and  cools  it,  would  be  ex- 
ceedingly tropical.  On  the  eastern  slopes  of 
the  Andes,  as  they  stretch  toward  Brazil  and 
Bolivia,  there  is  a  wealth  of  verdure,  vegeta- 
tion and  virgin  forests,  due  to  the  heavy  rains 
and  the  tropical  sun's  action.  This  comprises 
three-fourths  of  Peru's  territory.  The  table- 
lands are  cool  and  enjoy  a  temperate  climate. 
From  June  to  November,  the  days  are  marked 
by  a  fine  drizzling  rain,  particularly  along  the 
coast  but  for  the  rest  of  the  year  rain  coats  and 
umbrellas  are  not  needed. 

Peru  claims  a  population  of  4,500,000  but  I 
seriously  doubt  if  it  will  reach  3,500,000.  Of 
this  num_ber  fully  half  are  unlettered,  igno- 
rant Indians,  lacking  in  ambition,  requiring 
few  necessities  and  living  most  primitively. 


PERU  95 

One-fourth  are  half-breeds,  the  descendants  of 
the  conquerors  and  the  Incas.     About  two  per 
cent,  of  the  population  are  Chinese.     Here  it 
may  be  noted  that  many  archaeologists  and 
anthropologists  believe  that  the  early  settlers 
of  Peru  came  from  China,  across  the  stepping 
stones  in  line  with  the  finger  of  Alaska  which 
points  toward  Asia,  and  by  degrees  wandered 
down  the  western  coast  of  America,  finally 
establishing  a  government  near  what  is  now 
the  city  of  Cuzco.     Perhaps  15  per  cent,  are 
pure  white.     There  are  nearly  50,000  Euro- 
peans   and    Americans    located    throughout 
Peru.     Italians  and  their  descendants  are  most 
numerously  represented,  followed  by  Germans 
and  English. 

Peru  has  no  navigable  rivers  on  her  west 
coast,  the  many  streams  which  empty  into  the 
Pacific  being  dry  or  very  low  except  during 
the  periods  of  heavy  rains.  Properly  hus- 
banded their  water  power  could  be  effectively 
used.  To-day  they  serve  for  irrigation  and 
near  some  of  the  larger  cities,  such  as  Lima 
and  Callao,  have  been  advantageously  used  for 


96      SELLING  LATIN  AMERICA 

generating  electric  light  and  power  for  tram 
systems.  On  the  eastern  side  of  Peru  there 
are  about  3500  miles  of  navigable  rivers  for 
light-draft  vessels,  drawing  8  to  15  feet,  all 
of  these  streams  ultimately  emptying  into  the 
Atlantic. 

Iquitos  with  20,000  inhabitants,  on  the 
Amazon,  2500  miles  from  the  Atlantic  Ocean, 
is  the  center  of  the  rubber  industry,  and  is 
more  accessible  from  New  York  than  from  the 
capital  of  the  Republic,  Lima. 

Peru  has  1840  miles  of  railway,  1300  being 
standard  and  500  narrow  gauge.  Nearly  3500 
miles  of  road  have  been  surveyed  and  are  in 
various  process  of  construction.  Nominally 
about  1200  miles  of  these  roads  are  owned 
by  the  Government  but  are  operated  and  con- 
trolled by  the  Peruvian  Corporation,  Ltd., 
an  English  organization^  whose  presence  is 
very  much  in  evidence  in  Peru,  and  which  also 
operates  a  line  of  steamers  on  Lake  Titicaca. 
Under  the  present  contract  with  the  govern- 
ment this  concern  is  to  control  the  railways 
under  it  until  1973,  a  certain  percentage  of 


PERU  97 

the  profits  to  go  to  the  State,  and  another  por- 
tion to  be  utilized  in  railway  extension. 

The  Peruvian  Corporation,  it  should  be 
stated,  was  organized  by  Europeans  holding 
Peruvian  bonds  on  which  it  was  impossible  to 
collect  the  guaranteed  interest,  due  to  the  mis- 
management of  the  government  as  well  as  the 
outcome  of  the  war  with  Chile.  This  corpo- 
ration took  over  and  cancelled  the  indebted- 
ness in  return  for  certain  privileges  among 
which  was  the  right  to  exploit  the  rail- 
ways. 

To  Henry  Meiggs,  an  American  from  San 
Francisco,  Peru  and  the  world  is  indebted  for 
the  completion  of  what  are  the  most  marvelous 
railways  on  the  globe.     By  a  series  of  twists 
and  turns,  which  include  65  tunnels  and  67 
bridges,  it  climbs  to  the  highest  point  in  the 
world  ever  reached  by  a  railway,  15,665  feet 
above  sea  level  in  a  distance  of  138  miles,  to 
what  is  locally  called  ''the  roof  of  the  world." 
Some  idea  of  the  rapidity  of  the  ascent  may 
be  gained  when  I  state  that  in  the  first  twenty- 
five  miles  from  Lima  the  train  ascends  2800 


98      SELLING  LATIN  AMERICA 

feet  above  the  sea,  while  it  reaches  5000  feet 
twelve  miles  further  on  its  journey. 

Another  wonderful  road  runs  from  Mol- 
lendo  through  Arequipa  and  on  to  Puno,  at  the 
edge  of  Lake  Titicaca,  passing  through  the 
most  magnificent  scenery  and  ascending  to  an 
altitude  of  14,665  feet.  There  are  numerous 
Americans  employed  in  the  management  of 
the  Peruvian  railways  and  practically  all  the 
rolling  stock  comes  from  the  States. 

The  many  mountains  paralleling  the  coast 
make  railway  construction  a  difficult  and  ex- 
pensive problem.  It  is  possible  that  this  will 
have  much  to  do  with  the  retarding  of  the 
progress  of  mine  development,  inasmuch  as 
many  of  the  mineral  deposits  are  almost  inac- 
cessible due  to  their  interior  location. 

Unlike  Chile,  Peru  has  manv  natural  har- 
bors,  affording  protection  against  storms,  Mol- 
lendo,  Salaverry  and  Eten  being  the  only  ones 
really  dangerous  to  shipping  and  life.  The 
ports  from  north  to  south  are  Tumbez,  Paita, 
Eten,  Pacasmayo,  Salaverry,  Chimbote, 
Huacho,  Ancon,  Callao,  Pisco,  MoUendo,  and 


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PERU  99 

Ilo.  The  docks  at  Callao,  the  leading  port, 
are  quite  modern  and  capable  of  receiving  the 
largest  vessels. 

Peru's  products  are  chiefly  mineral  and  agri- 
cultural. 

Her  mines  have  long  been  famous,  produc- 
ing gold,  silver,  copper,  iron,  coal,  bismuth, 
lead,  quicksilver,  tungsten,  antimony,  molyb- 
denum, vanadium  and  borax.  Her  petroleum 
fields  are  a  source  of  much  revenue.  Her 
guano  industry  is  being  revived  by  protecting 
the  birds  which  frequent  the  islands  and  by 
restricting  the  working  of  these  deposits. 
Sugar  cane,  cotton,  and  rice  are  profitably 
raised. 

The  forests  of  the  eastern  section  are  rich  in 
cabinet  and  medicinal  woods. 

Copper  is  the  leading  metal  mined,  the  pro- 
duction in  1912  being  valued  at  $9,625,000, 
while  the  amount  of  silver  extracted  in  the 
same  period  was  $5,152,412.  Vanadium, 
used  for  hardening  steel,  exists,  the  deposits 
being  larger  than  in  any  other  locality.  More 
than  $500,000,  or  70  per  cent,  of  the  world's 


100     SELLING  LATIN  AMERICA 

output,  was  exported  in  191 2.  The  bulk  of 
these  industries  is  controlled  by  American 
capital  and  many  Americans  are  employed. 

There  was  mined  in  Peru  in  191 2,  268,000 
long  tons  of  coal,  254,088  of  which  came  from 
the  mine  owned  by  the  American  companies 
operating  at  Cerro  de  Pasco  and  was  used 
chiefly  in  the  smelters.  Geologists  estimate 
that  there  is  a  carboniferous  area  in  this  coun- 
try of  approximately  40,000,000  tons  of  coal. 

Peru  is  fortunately  rich  in  being  the  pos- 
sessor of  petroleum  fields  yielding  a  high- 
quality  oil,  much  of  which  goes  to  the  States 
and  Europe  for  purifying.  One  local  refinery 
has  a  capacity  of  300,000  gallons  per  month. 
The  Standard  Oil  Company  owns  some  of 
these  properties,  but  the  largest  holders  are 
British  and  Italians.  In  1912,  214,947  metric 
tons  of  oil  were  produced.  The  national  line 
of  steamers  are  oil  burners. 

In  1913  Peru  exported  over  $51,000,000 
worth  of  cotton  and  $7,500,000  of  sugar;  $2,- 
000,000  of  vicuna,  alpaca,  llama  and  sheep's 
wool;  $500,000  worth  of  cocaine  and  $3,000,- 


PERU  loi 

ooo  worth  of  rubber.  Much  cofifee,  tobacco, 
and  cocoa  are  grown,  most  of  which  is  used 
for  home  consumption. 

Peru's  crops  are  produced  chiefly  by  irri- 
gation, the  watersheds  on  the  mountain  sides 
being  of  great  advantage  in  this  connection. 

Cotton  is  manufactured  into  cloth  in  mills 
situated  at  Lima,  Arequipa  and  lea.  There 
are  also  woolen  mills  but  they  do  not  come 
anywhere  near  supplying  the  local  demand 
and  much  is  imported. 

Panama  hats  are  largely  produced,  in  191 1 
the  exports  in  this  line  reaching  the  enormous 
sum  of  $2,147,668.  Some  twenty-five  factor- 
ies in  the  Cuzco  valley  are  devoted  to  the  pro- 
duction of  cocaine,  the  world's  supply  largely 
coming  from  this  section.  The  cattle  and 
wool  growing  industries  are  capable  of  much 
greater  development. 

Peru  is  on  a  gold  basis,  the  sole  being  the 
unit  of  value.  This  is  a  silver  coin  and  is 
designated  thus  "$."  Ten  soles  ($10)  equal  a 
gold  Libra  or  pound,  worth  a  pound  sterling 
or  $4.8665  U.   S.   gold   and  expressed  thus 


102     SELLING  LATIN  AMERICA 

^^Lp./^  meaning  Libra  Peruana,  or  Peruvian 
Pound.  A  sole  contains  lOO  centavoSj  or  cents. 

Peru's  exports  in  1912  were  $45,871,504, 
and  her  imports  $25,066,354,  the  bulk  of  the 
business  being  done  with  the  United  Kingdom, 
the  United  States  being  second.  Within  the 
past  five  years  the  exports  from  and  imports 
to  the  States  have  materially  increased  and  are 
rapidly  approaching  those  of  our  greatest  com- 
petitor, England.  This  is  due  perhaps  to  the 
development  of  the  mining  industries,  under 
the  control  of  American  capital.  In  1910, 
England  shipped  Peru  $8,134,189  worth  of 
goods  to  our  $4,484,214  and  Germany's  $3,- 
842,855.  In  191 2  the  figures  were  as  follows, 
England  $6,800,708,  United  States  $5,763,423 
and  Germany  $4,557,698.  Undoubtedly  the 
figures  for  1913,  when  available,  will  show  a 
decided  further  gain  for  us. 

Peru  exports  copper,  gold,  silver,  mercury, 
vanadium,  bismuth,  cocaine,  quinine,  wool, 
sugar,  petroleum,  hides,  hats  and  guano,  and 
imports  textiles,  mining  machinery,  oil  ma- 


PERU  103 

chinery,  pipe,  railway  supplies,  windmills, 
corrugated  iron,  tools,  hardware,  flour,  canned 
goods,  shoes,  electric  supplies,  typewriters, 
mineral  waters,  wines  and  liquors. 

The  bulk  of  invested  capital  is  English,  but 
in  this  line  the  Americans  are  forging  to  the 
front.  Germans,  Italians,  and  French  are 
chiefly  interested  as  merchants  throughout  the 

country. 

There  are  no  taxes  or  restrictions  placed  on 
commercial  travelers  and  samples  are  ad- 
mitted duty  free. 

If  you  are  handling  mining  machinery  or 
devices  for  use  in  mines  or  petroleum  fields, 
it  is  apparent  that  the  localities  where  these  in- 
dustries thrive  should  be  visited  personally. 
Many  of  the  mines  have  company  stores  lo- 
cated in  their  holdings  that  are  worthy  of  calls, 
while  others  maintain  purchasing  agents  in 
Lima    for    this    purpose.     Inquiry    of    local 
authorities  will  give  all  the  information  neces- 
sary, otherwise  the  following  cities  should  be 
visited : 


104     SELLING  LATIN  AMERICA 

Population 

Lima   150,000 

Callao    35,000 

Arequipa   35,ooo 

Cerro  de  Pasco 18,000 

Piura 15,000 

Trujillo    12,000 

Mollendo    6,000 

Cuzco,  with  a  population  of  26,000,  is 
hardly  worth  a  visit  for  business  purposes,  but 
is  interesting  for  its  historical  associations.  It 
was  the  ancient  metropolis  of  the  Inca  Em- 
pire. Mostly  all  of  its  buildings  were  of 
stone,  set  together  as  wonderfully  as  the  Pyra- 
mids, their  joints  being  so  perfect  that  a  knife 
blade  cannot  be  inserted  between  them. 
Streets  crossed  each  other  at  right  angles,  and 
were  paved  with  naturally  colored  stones, 
forming  intricate  patterns  and  geometrical  de- 
signs, which  can  still  be  seen.  There  was  an 
imposing  temple  dedicated  to  the  sun,  whose 
walls  were  studded  with  gold  plates.  Water 
from  the  mountains  ran  through  the  city 
streets,  while  around  the  entire  town  were  for- 


PERU  105 

tifications   many   of  which  yet   remain.     Its 
civilization  was  of  the  highest  order. 

Iquitos,  20,000,  should  only  be  visited  from 
Manaos  in  Brazil.     It  is  a  good  business  town. 

Peruvian    ports    can    be    reached    via    the 
Straits  of  Magellan  and  Smythe  Channel  from 
New  York  or  via  Colon  and  Panama.     There 
are  direct  European  steamers  from  England 
and  Germany  weekly,  with  connections  for 
Panama,  either  through  their  own  lines  or  via 
the  Chilean  or  Peruvian  National  steamers, 
both  of  which  make  all  the  ports  along  the 
coast.     There  are  also  tramp  and  freight  boats 
from  San  Francisco  which  carry  passengers, 
but  for  personal  comfort  this  service  is  not  to 
be  recommended. 

To  get  to  Iquitos,  take  the  river  boats  from 

Manaos,  Brazil. 


IX 

ECUADOR 

Sebastian  de  Benalcazar,  a  lieutenant  of 
Pizarro,  on  December  6,  1534,  was  the  first 
European  to  enter  the  Kingdom  of  Quito,  the 
seat  of  government  of  the  Caras  Indians.  The 
Spaniards  controlled  this  territory  at  different 
times  from  Lima,  Peru,  or  from  Bogota,  Col- 
ombia, as  conditions  warranted. 

In  1809  the  Ecuadorians  attempted  to  throw 
off  the  yoke  of  Spain,  but  were  unsuccessful  in 
establishing  their  independence  from  the 
Mother  Country  until  May  24,  1822,  when 
General  Sucre  defeated  the  Spanish  forces  at 
Pichincha,  as  a  result  of  which  Ecuador  en- 
tered a  union,  fathered  by  the  Great  Liberator, 
Simon  Bolivar,  and  comprising  as  its  other 
states  Colombia  and  Venezuela.  Internal  dis- 
sension which  grew  resulted  in  the  dissolu- 
tion of  this  trinity  of  republics,  and  on  Au- 

106 


ECUADOR  107 

gust  14,  1830,  Ecuador  proclaimed  herself  an 
independent  republic,  adopting  a  constitution 
similar  to  those  in  vogue  in  Latin  America. 
The  executive  power  is  vested  in  a  President 
and  Vice-President,  the  legislative  in  a  Na- 
tional Congress  composed  of  two  houses — a 
Senate  and  a  Chamber  of  Deputies. 

Ecuador  has  an  area  of  1 16,000  square  miles, 
or  about  as  big  as  the  combined  areas  of  Mis- 
souri and  Arkansas.  The  Galapagos  Islands, 
which  at  one  time  the  United  States  tried  to 
acquire  by  purchase  for  a  coaling  station,  lying 
750  miles  to  the  westward,  with  an  area  about 
2500  square  miles,  also  belong  to  this  country. 
Ecuador  is  wedge-shaped,  bounded  on  the 
north  and  east  by  Colombia,  on  the  south  by 
Peru  while  the  waters  of  the  Pacific  lap  its 
western  shore  line. 

The  climate  is  diversified,  running  all  the 
gamuts  of  change  from  tropic,  semi-tropic  and 
temperate  to  cold.  The  tropical  region,  as 
may  be  surmised,  starts  at  the  coast  line  and 
continues  to  the  foothills  where  it  gradually 
changes  to  semi-tropical  at  6000  feet,  and  to 


io8     SELLING  LATIN  AMERICA 

cold  in  the  fertile  plateau  on  which  Quito  is 
situated  at  about  9000  feet.  Above  this  in  the 
mountains  it  is  always  much  colder.  The 
Equator  passes  across  the  northern  tip  of  the 
country  near  Quito,  while  two  ranges  of  the 
Andes  run  parallel  throughout  its  length  for 
520  miles,  embracing  some  of  the  highest 
peaks  in  the  system,  Chimborazo  being  20,498 
feet  high  and  Cotopaxi  19,613.  The  plateau 
between  these  ranges  averages  65  miles  in 
width  and  has  a  mean  altitude  of  8250  feet. 

These  mountains  form  watersheds  giving 
rise  to  two  river  systems,  flowing  respectively 
toward  the  sea  and  toward  the  interior,  which 
ultimately  develop  into  91  distinct  rivers,  only 
one,  the  Guayas,  on  which  Guayaquil  is  situ- 
ated about  60  miles  from  where  it  empties  into 
the  sea,  being  of  any  great  commercial  value. 
The  other  rivers  which  are  navigable  for  a 
short  distance  are  the  Daule  and  the  Vinces 
in  the  west,  while  the  extension  of  the  Amazon 
in  Ecuador,  there  called  Maranon,  affords 
direct  communication  with  Brazil. 

A  census  has  never  been  taken  in  Ecuador 


ECUADOR  109 

but  the  population  is  estimated  at  1,500,000. 
Perhaps  1,200,000  would  be  nearer  the  true 
figure.  Seventy-five  per  cent,  are  Indians, 
200,000  half-breeds,  100,000  white,  2500  ne- 
groes, with  a  floating  foreign  population  of 

7500-  ^       , 

There  are  fewer  railways  in  Ecuador  than 

any  other  country  of  South  America.  One 
American  owned  and  operated  railway  run- 
ning from  Duran,  on  the  opposite  bank  of 
the  river  from  Guayaquil  to  Quito,  a  distance 
of  285  miles,  may  be  described  briefly  as  the 
scenic  road  of  the  world.  There  is  another 
road  of  about  20  miles,  and  one  or  two  con- 
templated lines. 

Ecuador  has  been  cursed  by  revolutions,  and 
depressed  by  the  lack  of  enterprise  on  the  part 
of  its  various  governments.  Guayaquil  is  per- 
haps the  dirtiest  city  in  the  world  and  at  all 
times  a  hotbed  of  filth  and  disease.  For  these 
reasons  it  has  been  shunned  by  tourist  and 
traveler  alike,  although  it  is  one  of  the  best 
markets  I  know  of  on  the  West  Coast. 

The  country  has  no  great  industries.     It  is, 


no     SELLING  LATIN  AMERICA 

however,  susceptible  of  enormous  develop- 
ments. It  has  no  agriculture  to  speak  of,  but 
can  successfully  raise  sugar,  tobacco,  coffee, 
cotton,  cocoa,  bananas,  wheat,  cereals  and 
tropical  and  temperate  fruits.  Its  forests  are 
rich  in  cabinet  and  hard  woods.  Medicinal 
trees  abound,  as  well  as  the  tagua  nut  tree  from 
which  the  ivory  nut  comes,  and  the  species  of 
palm  which  furnishes  the  fibre  for  Panama 
hats.  Cocoanuts  are  plentiful  and  of  an  ex- 
cellent quality.  There  are  minerals  in  quanti- 
ties sufficient  to  pay  for  the  mining,  such  as 
coal,  sulphur,  copper,  gold,  iron  and  silver. 
Oil  has  recently  been  discovered.  Over  most 
of  the  land  disease  lurks  and  the  ambition  of 
the  native  is  dead. 

The  monetary  unit  of  value  is  the  sucre, 
named  after  one  of  its  military  heroes;  it  has  a 
value  in  American  money  of  48.7  cents.  Ten 
sucres  are  the  equivalent  of  a  pound  sterling 
and  are  called  a  condor,  after  the  Andean  bird. 

There  are  a  few  English  houses  in  business 
here,  but  the  bulk  of  the  trade  is  under  Ger- 
man control.     Many  Syrians  have  come  to  the 


ECUADOR  III 

country  and  established  themselves  as  petty 
merchants. 

Cocoa  is  largely  grown  in  Ecuador,  the  bean 
being  of  a  high  grade,  rich  in  color  and  fats. 
Strange  to  say,  practically  none  of  the  choco- 
late of  commerce  is  made  here,  the  crude  dried 
bean  only  being  exported.  In  1912  $7,653,505 
of  this  article  alone  was  exported,  chiefly  to 
Europe,  despite  the  fact  that  we,  as  a  nation, 
are  the  largest  users  of  chocolate. 

Forty  million  one  hundred  and  forty-three 
thousand  four  hundred  and  fifty-two  pounds 
of  tagua  or  ivory  nuts  worth  $936,51 1  were  ex- 
ported in  the  same  time,  most  of  it  going  to 
Germany  to  be  made  into  buttons ;  one  German 
village  has  fourteen  factories  elaborating  this 
product  into  the  finished  article  of  commerce. 
Panama  hats  are  made  by  individuals,  col- 
lected by  jobbers,  and  exported,  this  trade  in 
1912  amounting  to  $1,372,051. 

More  than  $1,000,000  worth  of  rubber  was 
exported  in  1913,  and  in  the  same  time  coffee 
to  the  value  of  $783,787,  most  of  which  went 
to  Chile. 


112     SELLING  LATIN  AMERICA 

The  total  exports  in  191 2  amounted  to  $13,- 
717,884,  as  against  $10,652,843  imports,  the 
leading  articles  being  boots  and  shoes,  candles, 
ready  made  clothes,  crockery,  drugs,  food 
stuffs  (flour  and  canned  goods),  hats,  hard- 
ware, machinery,  oils,  paper,  perfumes,  tex- 
tiles, wines  and  liquors. 

I  cannot  refrain  from  repeating  that  Ecua- 
dor, due  to  the  prevalance  of  disease,  is  passed 
over  by  most  travelers  and  as  a  consequence 
there  is  little  competition,  and  one  is  sure  of 
doing  business  here  if  his  product  is  appropri- 
ate. 

A  small  license  or  fee  is  one  of  the  legal  re- 
quirements to  sell  goods  in  this  country,  but 
is  more  honored  in  the  breach  than  the  ob- 
servance. 

These  towns  should  be  made: 

Population 

Guayaquil   80,000 

Quito    80,000 

Cuenca    35,000 

Riobamba 1 8,000 

There  is  but  one  city  in  the  Galapagos  group 
of  islands,  namely  Floriana.     They  are  un- 


ECUADOR  113 

worthy  of  any  attention  from  a  commercial 
standpoint. 

Ecuador  is  reached  most  directly  from 
Panama  in  about  three  days.  Travelers  going 
to  Peru  or  Panama  from  any  of  its  ports  are 
detained  in  quarantine  and  have  their  baggage 
disinfected.  This  rule  is  strictly  observed. 
Freight  should  be  sent  via  any  line  to  Colon 
or  Panama  for  trans-shipment  as  there  are  but 
few  direct  boats.  From  San  Francisco  the 
Kosmos  Line  of  Hamburg  formerly  main- 
tained a  bi-monthly  direct  service  which  may 
be  resumed  after  the  war.  The  West  Coast 
Line  from  New  York  has  irregular  sailings 
via  the  Strait  of  Magellan,  carrying  only 
freight;  the  voyage  takes  about  three  months 
as  the  ships  drop  off  cargo  en  route. 


X 

COLOMBIA 

Columbus  on  his  fourth  trip  of  discovery  to 
the  New  World  was  the  first  European  to 
sight  Colombia.  He  sailed  along  the  coast 
during  September,  1502,  but  did  not  undertake 
to  land.  Alonso  de  Ojeda  in  1508  obtained  a 
patent  from  the  Spanish  crown  and  after  re- 
peatedly repulsing  the  warlike  Indians,  se- 
cured a  foothold  at  Cartagena,  which  place  he 
proceeded  to  fortify.  Others  with  warrants 
from  the  King  of  Spain  also  entered  the  terri- 
tory, ultimately  subjugating  the  Indians  and 
establishing  the  capital  at  Bogota  in  1538. 

The  province  was  called  New  Granada  and 

was  governed  by  a  Viceroy  until  18 10  when  a 

revolutionary  movement  deposed  him,  and  on 

December  17,  1819,  the  Republic  of  Colombia 

was    born.     Under   the   guidance    of    Simon 

Bolivar,  Venezuela  and  Ecuador  joined  with 

114 


COLOMBIA  115 

Colombia  in  forming  a  union  of  these  repub- 
lics, which  could  not  be  held  together  after  the 
death  of  the  founder,  in  1830.  On  the  disso- 
lution of  this  body  of  states,  the  Republic  of 
New  Granada  came  to  light  November  17, 
1 83 1,  this  title  being  changed  to  the  United 
States  of  Colombia  in  1863. 

Colombia  covers  an  area  of  438,436  square 
miles,  and  like  the  United  States  enjoys  the 
unique  advantage  of  having  a  coast  line  on  two 
oceans — the  Caribbean  Sea  to  the  northwest 
being  part  of  the  Atlantic  and  the  Pacific  on 
the  south  and  west.  Ecuador  and  Peru  form 
her  southern  boundary,  Brazil  and  Venezuela 
are  on  her  eastern  frontier,  while  Venezuela 
stretches  across  much  of  her  northern  limits, 
and  the  Republic  of  Panama  is  the  only  land 
on  the  west. 

Colombia  is  a  land  of  mountains,  plateaus 
and  wide  plains.  To  the  east  and  south  are 
large  areas  of  level  ground  known  as  ^^llanos'' 
or  '^selvas''  covered  with  grass  and  tropical 
growths  including  virgin  forests.  This  sec- 
tion has  enormous  rainfalls,  is  very  warm,  un- 


ii6     SELLING  LATIN  AMERICA 

healthful  and  sparsely  populated,  in  fact,  has 
hardly  been  explored.  There  are  three  differ- 
ent mountain  systems  running  northeast  and 
southwest,  between  which  are  rich,  luxuriant 
valleys,  capable  of  great  agricultural  possibili- 
ties. These  mountains  contain  many  extinct 
volcanoes,  of  varying  altitude,  one  being 
18,000  feet  high. 

The  climate  ranges  from  tropical  to  temper- 
ate, Bogota,  the  capital,  having  a  uniformly 
cool  and  spring-like  temperature  throughout 
the  year,  due  to  its  elevation  of  8600  feet.  In 
the  lowlands,  and  especially  along  both  coasts, 
the  heat  is  oppressive  and  far  from  salubrious. 
This  is  also  true  of  much  of  the  low-lying  in- 
terior country.  The  cities  on  both  coasts  are 
notably  unsanitary. 

Colombia  claims  a  population  slightly  in 
excess  of  5,000,000,  but  I  doubt  if  it  really  has 
4,000,000.  About  one-tenth  of  the  inhabi- 
tants are  pure  white  and  there  are  200,000  wild 
Indians,  living  primitively  under  tribal  chiefs, 
nominally  under  the  control  of  the  local  gov- 
ernment    The    remainder    are    mixtures    of 


COLOMBIA  117 

white,  black  and  Indian  in  varying  propor- 
tion, over  300,000  of  whom  are  negroes  and 
mulattoes.  Little  can  be  hoped  for  from  the 
majority  of  these  people  owing  to  their  poor 
source  of  origin  and  the  climatic  conditions 
which  surround  them. 

The  Government  recognizes  the  doctrine  of 
states  rights,  and  is  republican  in  form  with 
the  usual  branches,  judicial,  legislative  and  ex- 
ecutive. A  President  with  two  Vice-Presi- 
dents represent  the  executive  control,  and  the 
legislative  body  is  composed  of  a  Senate  and 
House  of  Representatives. 

The  mountainous  topography  of  Colombia 
has  had  much  to  do  with  the  scarcity  of  rail- 
ways, rendering  them  expensive  In  construc- 
tion and  owing  to  the  great  distance  between 
possible  termini,  likely  to  make  them  profit- 
less ventures.     There  are  about  650  miles  of 
railroads  in  Colombia,  many  of  them  supple- 
mental to  river  transportation,  or  connecting 
ports  with  interior  towns.     It  is  doubtful  if 
this  condition  will  ever  alter  materially. 
The  trade  of  Colombia  is  carried  chiefly  on 


'ii8     SELLING  LATIN  AMERICA 

the  Magdalena  River,  which  is  1060  miles 
long  with  a  swift  current,  and  navigable  to 
Honda,  a  city  600  miles  from  Barranquilla 
at  its  mouth.  A  marine  railway,  around  the 
rapids  at  Honda,  allows  small  steamers  to  go 
about  200  miles  above  this  inland  port. 
Goods  intended  for  Bogota  usually  go  via  rail 
from  Puerto  Colombia  to  Barranquilla,  a  dis- 
tance of  about  sixteen  miles,  and  are  then  trans- 
ferred to  the  stern  wheeler,  wood-burning, 
river  steamers  for  all  the  world  like  those 
which  navigate  the  Mississippi.  A  trip  from 
Barranquilla  or  from  Cartagena  to  Bogota 
takes  via  the  Magdalena  River  from  ten  to 
fourteen  days,  according  to  the  stage  of  water 
in  the  river  and  includes  steamboat,  railway 
and  muleback  travel.  In  making  this  trip  the 
traveler  is  advised  to  take  tinned  food  and  bot- 
tled mineral  water. 

Travel  through  Colombia  at  best  is  difficult, 
the  roads  are  bad  and  the  hotels  miserable. 
Goods  intended  for  Bogota  have  six  trans-ship- 
ments from  the  ocean  to  their  destination — an 
argument  for  good  packing. 


COLOMBIA  119 

The  Atrato  River,  which  rises  in  the  foot- 
hills of  the  Andes  and  empties  into  the  Gulf 
of  Darien,  an  arm  of  the  Caribbean  Sea  and 
which   England   threatened   to  make   into   a 
canal  connecting  the  two  oceans  if  not  given 
special  privileges  in  the  Panama  Canal,   is 
navigable  for  about  225  of  its  350  miles.     The 
largest  river  on  the  Pacific  side  is  the  San 
Juan,  being  navigable  for  150  of  its  200  or 
more  miles.     The  rivers  emptying  into  the 
Amazon  are  navigable  for  canoes  and  lighters, 
but  are  so  remote  and  in  such  a  sparsely  popu- 
lated region  as  to  be  negligible  quantities  in 

this  connection. 

Agricultural  experts  estimate  that  only  one- 
third  of  Colombia  is  susceptible  of  cultiva- 
tion, the  eastern  part  being  swampy  and  the 
high  mountain  lands  incapable  of  sustaining 
any  growth,  especially  at  an  elevation  of 
13,000  feet.  The  belt  of  coast  lands  with  the 
plateau  regions  can  be  made  highly  produc- 
tive. 

Coffee  is  perhaps  the  largest  crop  grown,  in 
1913  the  output  being  nearly  55,993  tons  val- 


I20     SELLING  LATIN  AMERICA 

ued  at  $16,777,908,  practically  all  of  which 
came  from  the  Cauca  Valley,  and  nearly  all 
taken  by  the  United  States. 

Some  cotton  is  grown,  of  a  particularly  long 
fibre,  and  this  industry  could  be  easily  devel- 
oped into  a  larger  one. 

Due  to  the  work  of  the  United  Fruit  Com- 
pany of  Boston,  which  maintains  banana 
plantations  near  Santa  Marta  and  Cartagena, 
the  growing  of  this  staple  fruit  is  enlarging 
into  a  great  business,  owing  to  the  fact  that  the 
soil  and  climatic  conditions  are  ideal  for  its 
propagation.  In  1913,  $1,996,999  worth  of 
this  fruit  alone  was  shipped. 

Rubber  to  the  extent  of  $736,427,  tobacco 
valued  at  $442,461,  most  of  which  went  to 
Germany,  ivory  or  tagua  nuts  worth  $754,708 
and  Panama  hats  to  the  extent  of  $1,174,641 
were  shipped  in  1913.  These  industries  are 
susceptible  of  a  greater  increase. 

The  cattle-raising  business  could  be  materi- 
ally developed  in  some  sections  of  the  coun- 
try which  now  grazes  about  3,000,000  head. 
The  breeding  of  goats  could  be  done  profit- 


COLOMBIA  121 

ably.  Hides  to  the  value  of  $2,661,721  were 
exported  last  year,  the  United  States  taking 
by  far  the  greater  portion.  Some  30,000  alli- 
gator skins  are  sent  annually  to  the  leather 
markets  of  Europe  and  America. 

Excellent  hard,  cabinet  and  dye  woods  are 
to  be  found  toward  the  interior,  but  the  poor 
transportation  facilities  retard  the  develop- 
ment of  trade  in  this  field. 

Colombia's  chief  wealth  is  in  her  mines. 
There  is  much  gold,  also  iron,  silver,  lead,  cop- 
per and  coal.  In  the  production  of  platinum 
this  country  ranks  next  to  Russia.  Petroleum 
is  found  and  the  petroleum  industry  is  rapidly 
assuming  large  proportions.  Practically  all 
the  emeralds  of  the  world  to-day  come  from 
Colombia,  this  precious  stone  being  worth 
more  per  carat  than  diamonds.  The  govern- 
ment controls  the  exploitation  of  emerald 
mines,  leasing  them  to  operators.  The  chief 
groups  of  mines  are  the  Muzo,  the  Coscuez, 
the  Chivor  and  the  Cuincha,  the  first  named 
having  a  yearly  output  of  262,548  carats  of 
the  first  water,  467,690  of  the  second,  22,700 


122     SELLING  LATIN  AMERICA 

of  the  third  and  17,800  of  the  fourth  class. 
The  Chivor  group,  it  is  estimated,  is  capable 
of  producing  $500,000  worth  of  these  stones 
per  year. 

Gold  to  the  value  of  $6,634,914  was  ex- 
ported in  1913.  Its  production  increases  an- 
nually. About  $1,000,000  worth  of  silver  and 
$600,000  worth  of  platinum  were  shipped 
abroad  in  1913. 

Colombia  is  presumably  on  a  gold  stand- 
ard, having  as  its  unit  of  value  a  peso  or  dol- 
lar equal  in  value  to  the  American  one.  As  a 
matter  of  fact,  however,  the  currency  in  circu- 
lation is  an  inconvertible  paper  dollar,  which 
fluctuates  in  value  according  to  the  stability 
of  the  government.  I  have  seen  it  take  three 
hundred  of  these  dollars  to  equal  one  of 
ours.  Now  a  paper  dollar  is  worth  about  one 
cent  gold.  Business  transactions  are  usually 
done  in  United  States  dollars  or  English 
pounds. 

Much  of  the  business  of  Colombia  is  in  the 
hands  of  the  Germans  who  maintain  houses  at 
the  port  towns  and  branches  at  other  trade  cen- 


COLOMBIA  123 

ters  in  the  interior.     The  English  are  the  next 
largest  investors,  followed  by  the  French. 

Colombia  in   1913  imported  goods  to  the 
value  of  $28,535780  and  exported  products 
worth    $34,315,252.     Of    these    amounts    the 
United  States  shipped  her  27  per  cent,  Great 
Britain  20  per  cent,  and  Germany  14  per  cent. 
Colombia  shipped  us  55  per  cent,  of  her  prod- 
ucts, to  Great  Britain  16  per  cent,  and  to  Ger- 
many ^Yz  per  cent.     Expressed  in  figures  we 
bought  from  Colombia  $18,861,880  and  sold 
her  $7,629,000.     It  is  obvious  that  we  should 
do  a  much  larger  trade  with  the  country,  espe- 
cially when  it  is  practically  next  door  to  us. 
Our  trade  with  her  in  textiles  now  is  $1,500,000 
against   England's   $3,500,000.     In   this   one 
line  we  should  be  able  to  make  a  100  per  cent. 

increase. 

Colombia  exports  coffee,  gold,  emeralds, 
platinum,  rubber,  tagua  nuts,  hides,  skins, 
feathers,  bananas,  hats,  and  requires  textiles, 
foodstuffs,  flour,  kerosene,  railway  supplies, 
hardware,  machinery,  medicines,  paper, 
metals,  wines  and  liquors. 


124     SELLING  LATIN  AMERICA 

While  Colombia  per  se  does  not  impose  a 
tax  in  order  to  do  business  within  her  terri- 
tory, many  of  the  municipalities  do.  This 
problem  is  a  matter  that  can  generally  be  ad- 
justed with  the  leading  police  official  of  the 
city. 

The  chief  cities  are: 

Population 

Bogota    150,000 

Medellin   72,000 

Barranquilla    50,000 

Cartagena   40,000 

Manizales   35, 000 

Sonson     30,000 

Pasto   28,000 

Aguadas    27,000 

Cali   27,000 

Ibague     25,000 

Palmari 24,000 

Neiva    22,000 

Monteria 21,000 

Yarumal    21,000 

Cucuta    20,000 

Bucaramanga    20,000 

Travel  is  tiresome,  cities  hard  to  reach, 
samples  difficult  to  carry.  The  country  can 
be  thoroughly  covered  by  calling  on  the  trade 


COLOMBIA  125 

in  Barranquilla,  Cartagena,  Bogota,  Santa 
Marta,  Rio  Hacha,  Medellin  and  Bucara- 
manga.  The  larger  business  houses  are  lo- 
cated at  these  points  and  have  branches  in  the 
smaller  cities,  to  which  goods  are  shipped,  and 
with  which  they  are  in  close  contact. 

Colombia  may  be  reached  directly  from  the 
United  States  by  the  United  Fruit  Company's 
ships  which  stop  at  all  ports  on  the  Caribbean 
Sea,  or  one  may  go  direct  to  Colon  and  there 
transship  to  some  vessel,  of  which  there  are 
many  plying  along  the  coast. 

Buenaventura  and  Tumaco  are  the  largest 
ports  on  the  Pacific  coast  and  are  in  weekly 
connection  with  Panama  through  the  medium 
of  small  steamers. 


XI 

VENEZUELA 

Venezuela  was  discovered  by  Columbus  on 
his  third  voyage  to  America  August  i,  1498, 
at  the  time  of  his  visit  being  the  home  of  more 
than  150  different  tribes  of  warlike  Indians, 
who  resisted  to  their  limit  the  attempts  made 
by  Spain  to  conquer  them  and  explore  the 
country.  In  1520,  Cumana,  on  the  coast  of 
the  Caribbean  Sea,  was  founded  and  is  the  old- 
est European  settlement  in  this  hemisphere. 
The  Indians,  however,  kept  up  a  continuous 
warfare  against  the  invaders,  being  gradually 
pushed  into  the  interior  while  the  conquerors 
established  themselves  along  the  coast  in  towns 
fortified  to  resist  invasion  from  the  buc- 
caneers w^ho  paid  them  many  visits. 

An  attempt  at  independence  was  made  in 

171 8,  which  was  suppressed.     Although  quasi 

loyal  to  the  Spanish  crown,  there  were  many 

126 


VENEZUELA  127 

abortive  attempts  at  revolution,  v^hich  finally 
assumed  definite  form  in  18 10  when  the  citi- 
zens of  Caracas  revolted  openly,  and  declared 
Venezuela  independent  July  5,  181 1.  Spain, 
however,  put  down  this  uprising  and  reestab- 
lished its  authority,  maintaining  control  of  the 
colony  until  August  7,  1819,  when  Simon  Boli- 
var defeated  the  Castilian  army,  and  made 
Venezuela  one  of  the  three  States  of  Greater 
Colombia.  With  the  breaking  up  of  this  al- 
liance Venezuela  became  absolutely  independ- 
ent September  22,  1830. 

Venezuela  is  situated  in  the  northern  tip  of 
South  America  with  a  northwestern  boundary 
of  2000  miles  on  the  Caribbean  Sea.  To  the 
east  she  is  bounded  by  British  Guiana,  on  the 
south  by  Brazil  and  the  west  by  Colombia, 
a  total  area  of  393,976  square  miles,  although 
it  is  really  doubtful  if  the  exact  extent  of  the 
country  is  known,  especially  along  the  Brazil- 
ian frontier.  It  is  as  large  as  Illinois,  Indi- 
ana, Ohio,  Michigan,  Wisconsin  and  Iowa. 

There  are  three  different  mountain  regions 
in  Venezuela — a  continuation  of  the  Andes — 


128     SELLING  LATIN  AMERICA 

the  Coastal  Range  and  the  Parima  Range,  be- 
tween which  are  many  high  plateaus.  The 
mountain  ranges  reach  an  altitude  of  nearly 
10,000  feet,  while  the  highest  plateau  is  about 

6000  feet. 

Owing  to  the  mountain  systems,  Venezuela 
is  divided  into  three  climatic  zones:  the 
tropical  extending  along  the  coast  and  up  into 
the  valley  through  the  center  of  which  flows 
the  Orinoco  River,  the  semi-tropical  zone  to 
be  found  in  the  llanos  or  broad  plains  or 
plateau  between  the  mountain  ranges,  and  the 
temperate  zone  along  the  sides  of  the  moun- 
tains on  which  is  grown  the  famous  coffee  for 
which  the  country  is  noted. 

The  United  States  of  Venezuela  is  a  federal 
union  with  a  republican  form  of  government, 
the  States,  of  which  there  are  20,  being  en- 
tirely autonomous  in  their  internal  affairs. 
The  executive  power  is  vested  in  a  President 
and  two  Vice-Presidents,  and  the  legislative 
in  two  houses — a  Senate  and  a  Chamber  of 
Deputies. 

While  the  official  estimate  of  the  population 


VENEZUELA  129 

is  2,743,000,  it  is  doubtful  if  the  country  has 
1,500,000  inhabitants.  There  are  about  400,- 
000  semi-nomadic  Indians,  the  remainder  be- 
ing of  mixed  blood,  part  Indian,  part  negro, 
part  white,  or  a  mixture  of  all  three.  Pure 
white  and  pure  negroes  are  comparatively  few. 
There  are  perhaps  20,000  Europeans  engaged 
in  business  and  located  in  the  larger  cities,  the 
countries  represented  in  the  order  of  their 
population  being  Germany,  Italy,  France, 
Spain,  England  and  a  very  few  Americans. 

In  the  northwest  of  the  country  is  situated 
Lake  Maracaibo,  370  miles  in  circumference, 
covering  an  area  of  8000  square  miles,  and 
navigable  over  its  entire  surface.  This  lake  is 
accessible  to  the  Caribbean  Sea  by  a  strait  34 
miles  long  and  varying  from  8  to  12  miles  in 
width.  Its  channel  permits  the  entrance  of 
ocean-going  vessels  of  5000  tons  or  less. 

The  fluvial  systems  of  Venezuela  are  numer- 
ous, there  being  about  70  rivers  navigable  for 
shallow-draft  boats  for  over  6000  miles,  the 
third  largest  river  in  the  world — the  Orinoco 
— with  its  many  tributaries  contributing  some 


I30     SELLING  LATIN  AMERICA 

4000  miles  of  this  distance.  About  600  miles 
up  this  river  is  situated  the  town  of  Ciudad 
Bolivar,  formerly  known  as  Angostura,  where 
the  bitters  of  that  name  were  first  made. 
Regular  lines  of  ocean-going  vessels  and 
steamboats  run  to  this  inland  port,  the  river 
being  navigable  for  smaller  vessels  to  San 
Fernando  de  Apuri,  where  the  Apuri  River 
joins  it  over  a  thousand  miles  from  its  mouth. 
It  drains  a  territory  of  over  370,000  square 
miles.  Other  navigable  rivers  are  the  Meta, 
the  Portuguesa,  the  Yaracuy,  and  the  Escal- 
ante.  Along  the  coast  of  Venezuela  there  are 
about  50  harbors  and  32  ports. 

For  its  size  there  are  few  railways  in  Vene- 
zuela, the  total  mileage  being  about  550,  and 
the  chances  are  that  it  will  be  many  years  be- 
fore there  will  be  any  marked  activity  in  this 
field,  due  to  the  topography  of  the  country,  its 
lack  of  population  and  its  tendency  to  revolu- 
tions. Some  idea  of  the  conditions  confront- 
ing the  engineer  may  be  had  when  I  state  that 
the  German  railway  from  Caracas  to  Valencia, 
a  distance  of   11 1  miles,  is  cut  through  the 


VENEZUELA  131 

mountains  in  86  different  tunnels  and  passes 
over  212  bridges,  often  coming  out  of  a  tunnel 
on  a  bridge  and  into  a  tunnel  again.  Every 
time  a  revolution  started  some  of  its  bridges 
were  blown  up  or  tunnels  blocked.  The  Eng- 
lish road  from  La  Guaira  to  Caracas,  a  dis- 
tance of  23  miles,  has  nowhere  50  feet  of 
straight  track  and  goes  up  the  mountain  its  en- 
tire length  at  a  gradient  of  4  per  cent.  The 
road  from  Valencia  to  Puerto  Cabello,  a  dis- 
tance of  33  miles,  owned  by  an  English  com- 
pany, requires  a  rack  and  pinion  supplemental 
track  to  negotiate  some  of  its  climbs. 

There  are  no  manufactured  products  ex- 
ported from  this  country.  The  few  things 
elaborated  within  its  confines,  matches, 
candles,  shoes,  beer,  alcohol,  sugar  and  the 
like,  are  for  local  consumption. 

The  chances  are  that  its  people  will  always 
be  pastoral  in  their  pursuits.  Its  coffee  and 
cocoa  are  world  famous  and  form  a  large  pro- 
portion of  its  exports,  about  25  per  cent,  of  its 
population  being  engaged  in  this  line.  In 
191 2,   $15,137,994  worth   of  coffee  was   ex- 


132     SELLING  LATIN  AMERICA 

ported,  two-fifths  of  this  going  to  the  LTnited 
States  and  the  remainder  to  Germany. 
^'Caracas"  cocoa  is  famous,  most  of  the  prod- 
uct going  to  France,  which  in  1913  imported 
$2,305,475  worth  of  this  article  alone. 

Tonka  beans,  used  in  flavoring  extracts,  are 
shipped  to  the  United  States,  which  bought 
$137,156  worth  of  them  in  1913. 

This  country  is  rich  in  dye  woods,  cabinet 
and  hard  woods,  but  the  great  distance  of  the 
fprests  from  the  seacoast  retards  this  industry. 

^'Ballata,"  an  inferior  rubber,  much  used  in 
the  arts  and  found  in  the  forests  bordering  the 
Orinoco  and  its  tributaries,  formed  an  impor- 
tant article  of  export,  $1,767,259  worth  being 
shipped  abroad  in  1913. 

One  of  the  largest  asphalt  deposits  in  the 
world,  covering  1000  acres  in  extent,  is  to  be 
found  in  the  State  of  Bermudez.  This  is 
owned  by  an  American  company  and  is  prac- 
tically all  exported  to  the  States,  $294,184  of 
the  $303,589  shipped  last  year  going  to 
America,  and  the  remainder  of  $9,405  to  Eng- 
land. 


VENEZUELA  i33 

Venezuela,  due  to  its  vast  grassy,  well- 
watered  plains,  is  destined  to  become  one  of  the 
world's  greatest  cattle-producing  countries, 
and  is  capable  of  supporting  many  million 
heads.  It  is  estimated  that  there  are  more 
than  2,000,000  goats  and  3,000,000  head  of  beef 
cattle  in  this  land  to-day.  Four  slaughter- 
houses adapted  to  ship  frozen  meat  to  Europe 
were  opened  and  seemed  to  be  on  the  verge 
of   success   when   governmental   interference 

closed  them. 

Hides  to  the  extent  of  $1,010,636  and  goat- 
skins to  the  value  of  $365,44?,  came  to  the 
United  States  from  this  country  in  1913. 
Feathers,  horns,  wild  animal  skins,  deer  skins 
and  fish-sounds  are  also  large  items  of  export. 

The  extent  of  the  mineral  wealth  of  Vene- 
zuela is  unknown,  but  the  chances  are  that  it  is 
exceedingly  rich  in  such  deposits.  It  is  cer- 
tain that  there  is  gold,  silver,  copper,  iron,  tin, 
sulphur,  asphalt,  coal,  lead,  petroleum,  phos- 
phates, manganese  and  caolin.  One  gold  mine 
between  the  years  1 871-1890  yielded  $25,000,- 
000.     I  have  seen  many  Indians  bring  bottles 


134     SELLING  LATIN  AMERICA 

of  gold  dust  to  stores  to  trade  for  supplies. 
There  is  undoubtedly  much  gold  to  be  found 
in  the  country  and  the  man  with  determination 
and  enterprise  who  will  follow  this  clue  is  sure 
to  get  rich  returns. 

The  Island  of  Margarita,  off  the  coast  of 
Venezuela,  and  owned  by  the  Republic,  pro- 
duces the  finest  of  pearls  and  mother  of  pearl. 
Other  islands  off  the  coast  are  rich  in  guano 
and  phosphate  rock. 

Venezuela  is  on  a  gold  basis,  the  bolivar, 
equalling  almost  20  cents  in  our  currency,  be- 
ing the  unit  of  value.  The  peso,  according  to 
which  bills  of  the  country  are  reckoned,  con- 
sists of  four  bolivars,  and  is  a  fictitious  coin 
not  existing  in  reality.  The  ^^peso  fuerte/'  or 
Hve-bolivar  piece,  is  a  regular  silver  coin. 

The  bulk  of  the  business  of  Venezuela  is 
handled  by  the  Germans,  although  the  United 
States  takes  most  of  its  exports,  with  France 
second,  Germany  third  and  England  fourth. 
German  merchants  are  all  over  the  country, 
the  Italians  also  are  much  in  evidence. 

In  191 2,  the  latest  data  available,  Venezuela 


VENEZUELA  i35 

exported  goods  to  the  value  of  $25,260,908 
and  imported  articles  worth  $20,568,940. 

She  purchases  agricultural  implements, 
arms,  ammunition,  bags  for  coffee  and  cocoa, 
beer,  butter,  canned  goods,  confectionery, 
chemicals,  drugs,  medicines,  flour,  glassware, 
iron-ware,  lard,  leather,  oils,  paints,  paper, 
perfumery,  railroad  material  (chiefly  from 
Europe),  wall-paper,  wines,  textiles,  cotton 
and  woolen  goods,  shoes,  hats,  and  exports 
coffee,  cocoa,  hides,  skins,  horns,  feathers,  dye 
woods,  tonka  beans,  gold,  pearls,  guano,  phos- 
phate rock,  fish-sounds  and  ballata. 

There  are  no  fees  or  taxes  assessed  on  the 
commercial  traveler,  and  samples  are  as  a  rule 
admitted  duty  free. 

The  following  cities  should  be  visited: 

Population 

Caracas   100,000 

Valencia    65,000 

Barqulslmeto 6o,ooo 

Maracaibo 50,ooo 

Puerto  Cabello 40,000 

Ciudad  Bolivar    40,ooo 

La  Guaira    20,000 


136     SELLING  LATIN  AMERICA 

Population 

Cumana    10,000 

Carupano    ......'    10,000 

Barcelona 10,000 

A  visit  to  the  Island  of  Margarita  is  not 
necessary  because  its  traders  come  to  the  ports 
of  Venezuela  for  supplies. 

Owing  to  the  fact  that  in  Venezuela  the 
consignee  can  obtain  his  goods  without  pre- 
senting an  invoice  or  bill  of  lading,  it  is  well, 
unless  the  merchant  to  whom  the  goods  are 
shipped  is  known  to  be  reliable,  to  send  them 
through  some  bank  or  banker,  with  draft  at- 
tached. 

Venezuela  is  reached  by  the  Red  D  Line, 
flying  the  American  flag,  direct  from  New 
York  to  La  Guaira,  which  maintains  weekly 
freight  and  passenger  sailings.  The  Royal 
Dutch  West  Indies  Line,  under  the  Dutch 
flag,  sail  bi-monthly  from  New  York,  having 
freight  and  passenger  service,  but  their  route 
involves  many  stops  and  takes  about  twice  the 
time  of  the  direct  Red  D  Line. 

Ciudad  Bolivar  may  be  reached  by  either 


VENEZUELA  137 

of  these  lines  or  by  going  to  Trinidad,  B.  W. 
I.,  on  any  of  the  vessels  touching  there,  then 
taking  the  river  steamers  which  cross  the  Gulf 
of  Para  and  make  the  Orinoco  River  landings. 
Better  passage  and  quicker  time  can  be  made 
for  these  ports  by  taking  a  Red  D  ship  to  La 
Guaira  and  trans-shipping  there  to  one  of  the 
coast  boats. 


XII 

CENTRAL  AMERICA 

Owing  to  their  many  points  of  similarity  in 
productions  and  climate  and  their  geographi- 
cal position,  the  five  republics  of  Central 
America,  the  English  colony  of  British  Hon- 
duras, as  well  as  the  Republic  of  Panama,  may 
be  considered  together. 

Nicaragua  and  Costa  Rica  were  discovered 
by  Columbus  on  his  last  voyage  to  the  New 
World  in  1502,  and  a  small  settlement  was 
made  by  him  in  Costa  Rica,  which  the  In- 
dians afterwards  destroyed,  being  incensed  by 
the  treatment  received  at  the  hands  of  the  in- 
vaders. In  1540  a  further  attempt  to  estab- 
lish a  trading-post  was  successful  and  finally 
in  1565  a  Spanish  governor  was  appointed, 
these  colonies  having  proved  to  be  valuable 
acquisitions  to  the  crown. 

In  the  meantime,  Cortez,  having  completely 

138 


CENTRAL  AMERICA  139 

subjugated  the  Aztecs  in  Mexico,  dispatched 
his  officers  in  all  directions  to  explore  the  coun- 
tries to  the  south.  Pedro  Alvaredo,  after  a 
series  of  battles,  finally  established  Spanish 
rule  over  San  Salvador  in  1525,  and  Guate- 
mala in  1527  v^hen  he  founded  the  City  of 
Guatemala.  Spanish  Honduras  was  acquired 
in  1526  by  means  of  conquest. 

British  Honduras  was  originally  a  part  of 
Guatemala,  the  Spanish  troops  stationed  there 
having  conquered  it,  and  it  was  ceded  by  Spain 
to  England  in  1760. 

Panama  was  a  part  of  Colombia  and  was 
discovered  by  Columbus  in  1502  who  minutely 
explored  its  shore  in  search  of  an  expected 
passage  to  the  Pacific.  In  1903  it  revolted 
against  Colombia  and  became  an  independent 
republic. 

In  1 82 1  the  five  Central  American  Spanish 
Colonies,  after  many  unsuccessful  attempts  at 
independence  formed  a  Federation,  known  as 
the  Central  American  Federation.  This  inde- 
pendence, however,  was  short-lived,  for  Aug- 
ustin  Iturbide,  who  had  proclaimed  himself 


I40     SELLING  LATIN  AMERICA 

Emperor  of  Mexico,  annexed  them  to  his  ter- 
ritory in  1822  despite  their  protests.  After 
the  downfall  of  Iturbide's  government  and  the 
execution  of  its  head,  these  states  again  formed 
a  new  union  in  1824.  Continual  friction  and 
lack  of  harmony  among  the  various  countries, 
caused  its  dissolution  and  one  state  after  the 
other  withdrew  and  ultimately  established 
and  proclaimed  its  independence.  Several 
abortive  attempts  since  the  rupture  of  1839 
have  been  made  to  reorganize  this  union,  and 
the  chances  are  that  these  states  will  always 
maintain  their  separate  individualities. 

Each  one,  including  Panama,  is  organized 
as  a  republic,  with  a  constitution  based  on  that 
of  the  United  States,  an  executive  in  the  per- 
sonage of  a  President,  and  a  legislative  body 
composed  of  two  houses — a  Senate  and  a 
House  of  Representatives  or  Chamber  of 
Deputies. 

British  Honduras  is  ruled  by  a  governor 
sent  from  England. 

Guatemala  has  a  total  area  of  48,290  square 
miles,   with   a   population   of   2,000,000,    the 


CENTRAL  AMERICA  141 

greater  portion  of  whom  are  Indians,  mixed 
breeds,  some  negroes,  chiefly  from  the  West 
Indies,  and  perhaps  50,000  whites,  mostly 
Europeans  and  Americans.  It  is  bounded  on 
the  north  by  Mexico,  on  the  east  by  British 
Honduras,  and  Salvador,  while  the  Pacific 
forms  its  southern  and  western  boundary. 

Salvador  with  an  area  of  7,225  square  miles 
is  the  smallest  of  the  Central  American  Re- 
publics. It  has  a  population  of  1,700,000  and 
its  people  are  of  a  progressive  type.  There  is 
a  large  percentage  of  Indian  and  mixed  blood 
among  the  inhabitants  with  a  fair  number  of 
whites.  The  Pacific  Ocean  forms  its  south- 
ern boundary,  Guatemala  its  western  and 
Spanish  Honduras  its  northern  and  eastern 

limits. 

Honduras  extends  over  46,250  square  miles, 
with  a  population  of  600,000,  chiefly  Indians. 
100,000  of  whom  are  uncivilized.  There  are 
few  whites  and  many  mixed  breeds.  Its 
northern  boundary  is  the  Gulf  of  Honduras, 
an  arm  of  the  Caribbean  Sea.  Guatemala  is 
on  its  western  frontier,  Salvador,  with  a  bay 


142     SELLING  LATIN  AMERICA 

of  the  Pacific  Ocean  on  its  south  and  Nica- 
ragua on  the  east. 

Nicaragua  has  49,200  square  miles  of  terri- 
tory with  700,000  inhabitants,  mostly  Indians, 
and  mixed  breeds,  with  a  gradual  increasing 
of  the  white  race.  Honduras  runs  diagonally 
across  from  northeast  to  southwest,  the  Pacific 
Ocean  is  on  its  west  coast,  Costa  Rica  on  the 
southern  frontier,  and  the  Caribbean  Sea 
washes  its  eastern  boundary. 

Costa  Rica  covers  23,000  square  miles  and 
has  399,424  citizens,  about  7000  being  Euro- 
peans, Americans  or  from  the  West  Indies. 
There  are  about  5000  Indians  and  the  remain- 
der whites,  blacks  and  mulattoes.  Its  north- 
ern neighbor  is  Nicaragua,  the  Caribbean  Sea 
washes  its  eastern  shore,  Panama  is  its  south- 
ern boundary,  while  the  Pacific  Ocean  laves 
its  entire  western  coast. 

Panama,  33,800  square  miles  in  extent,  with 
about  400,000  inhabitants,  and  varying  in 
width  from  37  to  no  miles,  needs  little  de- 
scription. It  is  bounded  on  the  north  by 
Costa  Rica,  on  the  east  by  the  Caribbean  Sea, 


CENTRAL  AMERICA  143 

the  south  by  Colombia,  and  the  west  by  the 
Pacific  Ocean. 

Through  its  center  is  a  strip  of  land  stretch- 
ing five  miles  on  either  side  of  the  Panama 
Canal  for  a  distance  of  45  miles  and  known 
as  the  Canal  Zone.  By  the  Isthmian  Canal 
Convention  of  November  18,  1903,  the  United 
States  acquired  a  perpetual  right  of  occupa- 
tion, use  and  control  over  the  Zone,  paying 
the  Republic  of  Panama  the  sum  of  $10,000,- 
000,  and,  beginning  February  26,  1913,  the 
sum  of  $250,000  annually  so  long  as  such  oc- 
cupancy continues.  The  Canal  Zone  is  gov- 
erned by  the  President  of  the  United  States. 
The  population  of  this  strip  during  the  build- 
ing of  the  canal  was  as  high  as  70,000,  but  it  is 
doubtful  if  it  has  30,000  inhabitants  to-day. 
With  the  completion  of  the  Canal,  the  force  of 
workmen  necessary  to  maintain  it  in  running 
order,  together  with  civilian  employes  and 
the  United  States  garrison,  will  make  a  per- 
manent population  of  perhaps  25,000. 

British  Honduras,  with  an  area  of  7562 
square  miles  and  a  population  of  40,000,  is  the 


144     SELLING  LATIN  AMERICA 

only  European  colony  in  Central  America. 
Its  inhabitants  are  Indians  and  negroes,  with 
a  few  mixed  breeds,  and  less  than  a  thousand 
whites.  It  has  no  railways,  although  some  ef- 
fort has  been  made  to  get  capital  interested, 
so  far  unsuccessfully.  The  British  Govern- 
ment seems  to  have  completely  neglected  this 
possession.  Its  rivers,  navigable  for  some  dis- 
tance, serve  all  its  transportation  requirements. 
The  topography  and  climate  of  all  these 
countries  is  much  the  same.  Mountain 
ranges  cross  and  recross  them,  having  peaks 
of  considerable  altitude,  many  of  which  are 
still  active  volcanoes.  As  is  obvious,  these 
mountain  systems  influence  the  climate  to  a 
marked  degree,  making  it  always  pleasant 
and  spring-like  in  the  plateaus  extended  be- 
tween them,  as  well  as  in  the  intermediary 
tablelands.  The  higher  elevations  are  always 
cool,  while  the  low-lying  coast-lands  are  ex- 
tremely warm  and,  as  a  rule,  unhealthy.  The 
watershed  which  they  form  deflects  the  streams 
arising  in  them  toward  either  the  Pacific  or 
the    Atlantic.     If    harnessed    these    streams 


CENTRAL  AMERICA  145 

could  be  used  to  great  advantage  for  light  and 
power.  Near  the  coast  they  are  navigable  for 
small  steamers  of  light  draft  and  canoes  and 
are  also  useful  in  getting  out  lumber,  afford- 
ing a  cheap  method  of  transporting  it  to  the 
coast. 

Due  to  the  smallness  of  the  countries,  and 
the  complications  in  the  v^ay  of  engineering 
problems,  especially  in  the  mountains,  there 
are  comparatively  few  railways. 

Costa  Rica  has  490  miles  of  railroad,  by 
means  of  which  the  capital  is  kept  in  touch 
with  ports  on  the  Atlantic  and  Pacific  Oceans. 

Salvador  has  about  174  miles  of  railroad  in 
operation  with  about  fifty  more  in  progress 
of  construction.  Transportation  in  the  in- 
terior is  made  convenient  and  comfortable  by 
the  2000  miles  of  really  good  roadway  built 
in  accordance  with  the  most  modern  methods. 

Guatemala  contains  450  miles  of  railroads 
which  afford  an  ocean  to  ocean  communica- 
tion. 

Honduras  possesses  slightly  over  100  miles 
of  road,  in  a  bad  state  of  repair,  with  obsolete 


146     SELLING  LATIN  AMERICA 

rolling-stock.  Engineers  are  making  prelim- 
inary surveys  which  will  mean  a  material  addi- 
tion to  the  railway  mileage  here. 

Nicaragua  maintains  about  225  miles  of 
railway  which  touch  her  leading  cities.  In 
addition  to  this,  Lake  Nicaragua,  92  miles 
long,  and  Lake  Managua,  32  miles  long,  are 
used  largely  for  transportation  purposes  and 
have  a  fair-sized  fleet  of  steamers  operating  in 
connection  with  the  railways. 

Panama  has  no  railways  of  its  own  at  pres- 
ent, although  $3,000,000  has  been  borrowed 
from  New  York  bankers  for  the  purpose  of 
building  lines  throughout  the  Republic. 

The  Panama  Railway,  owned  by  the  United 
States  Government,  passing  through  the  Canal 
Zone,  and  about  50  miles  in  length,  may  be 
considered  as  a  portion  of  the  railway  system 
of  the  Republic  of  Panama  for  its  citizens 
have  the  use  of  it  for  every  purpose. 

Substantially  all  the  railways  of  Central 
America  are  equipped  with  American  rolling- 
stock  and  operated  with  but  few  exceptions 
under    American    control.     It    is    extremely 


CENTRAL  AMERICA  147 

doubtful  if  the  demands  of  these  republics  will 
warrant  a  very  great  expansion  of  railways  for 
years  to  come. 

These  countries  have  no  manufactories,  and 
were  designed  by  nature  to  be  agricultural. 
In  time,  with  the  development  of  steamship 
service  they  may  become  truck  gardens  for 
the  United  States,  as  their  soil  is  admirably 
adapted  for  vegetables,  early  fruits,  melons 
and  berries.  In  some  districts,  especially  in 
Nicaragua  and  in  Honduras,  cattle  could  be 
raised  much  more  extensively.  There  are 
mines,  but  not  of  sufficient  wealth  to  attract 
much  capital. 

Owing  to  the  diversity  of  zones,  there  are 
opportunities  for  many  varieties  of  fruits,  veg- 
etables, and  cereals.  For  centuries  these 
countries  have  been  covered  with  the  most 
luxuriant  tropical  growths,  so  that  the  subsoil 
is  overlaid  with  a  thick  mould  estimated  at 
over  ten  feet  deep,  capable  of  excessive  pro- 
ductive possibilities.  Tobacco,  sugar,  indigo, 
rice,  corn,  coffee,  cocoa,  cocoanuts,  and 
bananas,  are  the  principal  products. 


148     SELLING  LATIN  AMERICA 

Virgin  forests  are  numerous;  in  fact  they 
exist  throughout  Central  America.  There  is 
an  abundance  of  pine,  oak,  many  natural  hard- 
woods, such  as  ironwood,  and  mahogany, 
plenty  of  cedar,  and  a  host  of  ideally  grained 
cabinet  woods,  susceptible  of  high  polish. 
Log-wood,  dividivi,  quebracha,  and  other 
trees  furnish  dye  woods.  Throughout  these 
countries  grows  the  Peruvian  balsam  from 
which  the  well  known  balsam  of  commerce 
comes.  There  are  rubber  trees.  Much  of 
the  chicle  from  which  chewing-gum  is  made 
comes  from  these  lands,  as  well  as  other  gums 
of  a  medicinal  nature. 

Banana  growing  has  done  much  to  bring 
prosperity  to  Costa  Rica,  Guatemala,  Nica- 
ragua, Honduras  and  Panama  and  the  chances 
are  that  this  industry  will  become  the  chief 
one  of  all  these  countries,  along  their  low- 
lands, which  are  so  well  adapted  to  the  propa- 
gation of  this  fruit  now  so  much  in  demand. 

As  an  evidence  of  the  growth  of  this  busi- 
ness and  what  it  means  to  these  localities,  let 


CENTRAL  AMERICA  149 

me  state  that  in  191 3  Costa  Rica  exported  $5,- 
200,000  worth  of  bananas;  Panama,  $1,150,- 
000;  Nicaragua,  $425,000;  Guatemala,  $825,- 
000;  Honduras,  $1,400,000,  and  British  Hon- 
duras, $200,000.  And  this  trade  is  yet  in  its 
infancy.  The  markets  of  Europe,  notably 
Germany  and  England,  are  also  supplied  from 
these  countries  and  within  twenty-five  years 
the  demand  will  undoubtedly  double,  due  to 
the  opening  of  the  Canal,  which  permits  the 
dispatch  of  the  fruits  along  the  west  coast  of 
South  America  in  modern  vessels. 

Coffee  is  also  an  important  export.  In  1913 
Costa  Rica  exported  $3,600,000  worth  of  cof- 
fee; Nicaragua  $1,780,000;  Guatemala  $12,- 
250,000;  and  Salvador  $7,900,000. 

Gold  and  silver  amounting  to  $6000  was 
exported  from  Panama  last  year;  $875,000 
from  Costa  Rica;  $900,000  from  Nicaragua; 
$900,000  from  Honduras,  and  $1,600,000  from 
Salvador. 

These  with  hides  and  skins,  cocoanuts,  ivory 
nuts,  cabinet  and  other  woods,  rubber,  balsam. 


-V 


i^o     SELLING  LATIN  AMERICA 

chicle,  tortoise-shell,  pearl  shells,  sugar  and 
tobacco  form  the  principal  items  of  export. 

The  exports  and  imports  during  1913  were 
as  follows: 

Country  Exports  Imports 

Panama    $  2,467,556  $10,400,000 

Costa  Rica 10,432,553  8,778,497 

Nicaragua    3,861,516  4,966,820 

Salvador     9,928,724  6,173,545 

Guatemala 14,449,926  10,062,328 

Honduras 3,300,254  5,132,678 

British   Honduras 2,850,000  3,500,000 

The  bulk  of  the  export  and  import  trade  of 
all  of  these  countries  is  in  the  hands  of  the 
United  States,  due  to  our  geographical  posi- 
tion, and  the  fact  that  we  have  many  citizens 
living  within  their  boundaries,  engaged  in 
various  enterprises.  England,  Germany  and 
France  are  our  closest  competitors.  Perhaps 
Germany  has  more  real  money  invested  here, 
and  there  is  a  great  preponderance  of  German 
mercantile  establishments  throughout  these 
nations.  The  following  table  gives  the  de- 
tails for  1913 : 


CENTRAL  AMERICA  151 

IMPORTS  TO  CENTRAL  AMERICA  FOR  1913 

United 
Country  U.  S.  Germany       Kingdom 

Guatemala   $5,053,060  $2,043,329  $1,650,387 

Salvador     2,491,146  713,855  1,603,846 

Honduras 3,463,662  558,327  751,651 

Nicaragua    2,549,026  804,038  939,290 

Costa  Rica 4,515,871  i, 355,417  1,303,187 

Panama    5,483,678  970,263  2,453,1 18 

British   Honduras..  2,250,000  7,280  300,000 

EXPORTS  FROM  CENTRAL  AMERICA 

FOR  1913 

United 
Country  U.  S.  Germany       Kingdom 

Guatemala   $3,923,354  $7,653,557  $1,600,029 

Salvador 2,823,251  1,699,694  705,607 

Honduras 2,869,188  176,112  13,467 

Nicaragua    1,766,548  702,265  515,381 

Costa  Rica 5,297,146  509,804  4,364,436 

Panama    2,130,000  240,000  86,000 

British   Honduras..  1,325,000  55,ooo  675,000 

Each  one  of  these  countries  requires  cotton 
and  woolens,  iron  and  steel  supplies,  corru- 
gated iron,  tools,  machinery,  food-products, 
flour,  wines,  liquors,  mineral  waters,  wooden 
ware  and  manufactures,  agricultural  imple- 


152     SELLING  LATIN  AMERICA 

ments,  soaps,  perfumes,  pharmaceuticals,  sur- 
gical instruments,  boots  and  shoes,  hats, 
hardware,  oil,  candles,  electric  supplies,  glass- 
ware, coffee  sacks,  socks,  stockings,  rubber 
goods,  musical  instruments  and  paints.  In 
fact  they  are  dependent  upon  the  outside  world 
for  all  the  manufactured  necessities  of  life. 

American  money  is  accepted  in  preference 
to  any  other  throughout  this  part  of  the  world, 
although  each  country  has  its  individual  mone- 
tary system. 

In  the  Canal  Zone  American  and  Pana- 
manian money  is  interchangeable,  that  is  either 
United  States  or  Panama  currency  is  equally 
well  received.  The  Republic  of  Costa  Rica 
as  well  as  the  English  Colony  of  British  Hon- 
duras, are  on  a  gold  basis,  while  Spanish  Hon- 
duras and  Salvador  are  on  a  silver  basis,  the 
national  money  in  common  circulation  in 
Guatemala  being  inconvertible  paper,  subject 
to  daily  fluctuations,  dependent  upon  market 
conditions  and  the  law  of  supply  and  demand. 
Nicaragua  and  Panama  are  on  a  gold  ex- 
change standard  basis. 


CENTRAL  AMERICA  153 

The  following  table  gives  the  necessary  data 
as  to  the  monetary  units  and  the  respective 
value  in  United  States  gold: — 

CENTRAL  AMERICAN  CURRENCY 

Value  in 

Country  Standard  Unit  U.  S.  Gold  Condition 

Costa   Rica    Gold     Colon     463^. cents  Staple. 

British  Honduras    ..Gold     Dollar    100.. cents  btaple. 

Nicaragua    Gold    exchange     ^      ,  ,  ^  c*.     1 

standard    Cordoba    ..100..  cents  btaple. 

Panama    Gold   exchange  *      c^     1 

standard    Balboa     ..  .100.  .cents    btaple. 

Honduras    Silver     Peso     39..  cents    Practically 

SL3-PlC 

Salvador    Silver     Peso     44.. cents    Practically 

SL3.pl  C» 

Guatemala     Inconvertible  .      c   t,-     *.  <. 

paper    Peso     5.. cents     Subject  to 

^  *"  daily  fluc- 

tuation. 

In  all  these  countries  the  subject  of  com- 
mercial travelers'  fees  may  be  dismissed 
briefly,  by  stating  that  British  Honduras, 
Costa  Rica,  Panama  and  Salvador  require  the 
payment  of  fees  and  the  others  do  not.  By 
the  exhibition  of  tact  it  is  often  possible  to 
evade  these  charges,  especially  if  proper  ar- 
rangements are  made  with  some  local  agent  or 
merchant. 

The  following  cities  should  be  visited : 

Country  Cities  Population 

British  Honduras       Belize 20,000 

Guatemala  Guatemala  City  .  .  100,000 

Quezaltenango  . .  .   25,000 


154     SELLING  LATIN  AMERICA 

Country  Cities  Population 

Coban 23,000 

Salvador  San  Salvador  ...-.  70,000 

Santa  Ana 60,000 

San  Miguel 30,000 

Honduras  Tegucigalpa 40,000 

La  Ceiba   10,000 

Nicaragua  Leon 70,000 

Managua   40,000 

Granada 15,000 

Bluefields    6,000 

Costa  Rica  San  Jose 50,000 

Cartago    5, 000 

Puerto  Limon   .  .  .     6,000 

Panama  Panama    40,000 

Colon    20,000 

Bocas  del  Toro.  .  .  10,000 

With  the  single  exception  of  Salvador,  all 
these  countries  are  most  easily  reached  from 
the  eastern  coast,  there  being  many  passenger 
and  freight  vessels  with  regular  sailings  from 
New  York,  Baltimore,  Mobile  and  New 
Orleans.  The  United  Fruit  Company  main- 
tain an  excellent  bi-weekly  service  between  the 
chief  ports  of  Central  America  and  New  York 
and  New  Orleans. 

Steamship  service  along  the  west  coast  is 


CENTRAL  AMERICA  155 

miserable,  passenger  and  freight  rates  being 
excessive.  The  passenger  ships  from  San 
Francisco  are  old,  poorly  equipped,  slow  and 
the  food  inferior.  Travelers  are  recom- 
mended to  enter  these  countries  from  the  east, 
taking  the  railway  across  to  the  west  coast,  and 
a  local  coasting  steamer  thence  to  their  desti- 
nation. The  Kosmos  Line  maintains  an  ir- 
regular service  from  San  Francisco.  Salva- 
dor has  a  national  line  of  steamships,  making 
calls  at  ports  in  Nicaragua,  Honduras,  and 
Guatemala  and  going  as  far  north  as  Salinas 
Cruz  in  Mexico,  the  western  terminus  of  the 
Tehuantepec  Railway,  from  which  goods  com- 
ing from  the  eastern  part  of  the  United  States, 
after  crossing  Mexico,  are  reshipped  for  Cen- 
tral American  west  coast  ports. 


XIII 

MEXICO 

Prior  to  the  invasion  of  Mexico  by  the 
Spaniards,  the  Aztecs  who  inhabited  the  coun- 
try, had  developed  a  wonderful  system  of  re- 
ligion, education,  civilization  and  govern- 
ment. Hernando  Cortes  landed  April  12, 
15 19,  at  about  where  Vera  Cruz  is  now  lo- 
cated, marched  inland,  and  with  the  aid  of 
friendly  Indians  succeeded  in  finally  conquer- 
ing the  inhabitants,  burning  their  cities,  de- 
stroying their  libraries  and  killing  their  em- 
perors, in  reward  for  his  service  being  made 
Governor  of  New  Spain  as  the  Spaniards 
called  this  land  in  1522.  The  Spanish  pos- 
sessions in  Mexico  and  Central  America  were 
united  for  the  purposes  of  government,  and  a 
viceroy  appointed  first  in  1535,  this  method  for 
the  control  of  these  colonies  being  used  until 

1 82 1.     Spanish  rule  in  Mexico,  as  with  all  of 

is6 


MEXICO  157 

her  dependencies,  was  harsh,  and  the  spirit  of 
revolt  came  to  a  head  in  18 10,  under  the 
leadership  of  a  Spanish  priest,  Miguel 
Hidalgo  y  Costilla,  who  was  defeated  and  exe- 
cuted in  181 1.  The  movement  for  freedom 
was  kept  alive  by  another  priest,  Jose  Maria 
Morales,  who  was  captured  and  killed  in  18 15. 
In  1821  Augustin  Iturbide  defeated  the  Span- 
ish army  and  was  successful  in  having  himself 
crowned  Emperor  of  Mexico  July  21,  1822. 
He  was  forced  to  abdicate  in  1823,  and  to 
leave  the  country,  but  returning  in  1824,  was 
captured  and  shot.  On  the  departure  of 
Iturbide,  Gen.  Antonio  Lopez  de  Santa  Ana 
proclaimed  the  country  a  republic,  Guadalupe 
Victoria  becoming  the  first  president.  Spain 
sent  an  army  to  regain  Mexico  in  1829  but 
was  utterly  defeated,  within  three  months  after 
landing,  and  ultimately  the  Spanish  Crown 
recognized  the  independence  of  Mexico,  Dec. 
28,  1836. 

April  21,  1836,  Texas  seceded  from  Mexico 
and  was  annexed  to  the  United  States  in  1845, 
following  which  Mexico  went  to  war  with  its 


158     SELLING  LATIN  AMERICA 

northern  neighbor,  was  conquered  and  had 
her  capital  occupied  by  American  troops. 

Taking  advantage  of  the  American  Civil 
War,  Napoleon  III,  aided  by  England  and 
Spain,  in  1862  placed  the  Austrian  prince, 
Maximilian,  on  a  throne  in  Mexico,  main- 
taining him  in  power  by  a  European  army. 
When  the  Civil  War  had  terminated  and  it 
became  evident  that  the  Washington  govern- 
ment would  oppose  this  European  invasion 
of  Mexico,  Napoleon  III  withdrew  his  mili- 
tary support,  Maximilian  was  captured,  and 
on  June  19,  1867,  was  shot  at  Queretaro.  On 
the  death  of  the  second  Emperor  of  Mexico, 
the  republic  again  came  into  being;  six  presi- 
dents had  controlled  its  destinies  up  to  the 
assassination  of  Francisco  Madero  and  the  as- 
sumption of  the  executive  power  by  Victor- 
iano  Huerta.  Porfirio  Diaz,  who  ruled  from 
1877  t^  1911?  gave  Mexico  a  stability  that  it 
never  possessed  before  or  since. 

More  than  300  successful  or  abortive  at- 
tempts at  revolution  are  recorded  during  the 
stormy  life  of  Mexican  independence.     A  con- 


MEXICO  159 

fusion  of  empires,  republics,  dictatorships  and 
military    usurpations    have    succeeded    each 
other   with    bewildering    rapidity.     Between 
1 82 1  and  1868  the  form  of  government  was 
changed  ten  times,  over  fifty  persons  succeed- 
ing each  other  as  presidents,  dictators  or  em- 
perors.    And  the  end  is  not  yet  in  sight.     The 
curse   of   anarchy  and  military  dictatorship 
hangs  over  the  land  like  a  pall.     Murder,  as- 
sassination, execution,  rapine,  the  wanton  de- 
struction   of     property    and    the    complete 
paralysis  of  the  commerce  of  the  nation  make 
us  ask  how  long  can  this  continue?     It  is  safe 
to  assume  that  when  some  man  is  found  strong 
enough  to  take  up  the  frayed  fragments  of  this 
people,  and  bring  order  out  of  chaos,  a  re- 
publican form  of  government  will  again  be 

established. 

Its  constitution,  based  after  ours,  calls  for  a 
federal  form  of  government,  the  various  states 
being  free  to  regulate  their  internal  affairs; 
the  executive  power  is  vested  in  a  President 
and  Vice-President  elected  for  six  years  each, 
with    a    legislative   body    of    two    branches, 


i6o    SELLING  LATIN  AMERICA 

namely,  a  Senate  and  a  Chamber  of  Deputies. 

Mexico,  including  the  islands  along  its 
coast  and  Southern  California,  extends  over  an 
area  of  767,097  square  miles.  Its  northern 
boundary  is  the  United  States,  a  coast  line  of 
4574  miles  on  the  Pacific  Ocean  marks  its 
western  and  southern  limit,  in  connection  with 
a  portion  of  Guatemala  and  British  Honduras, 
while  a  little  section  of  Guatemala,  1400  miles 
of  the  Gulf  of  Mexico  and  327  miles  on  the 
Caribbean  Sea  form  its  eastern  confines. 

Two  mountain  systems  traverse  the  entire 
country  between  which  are  a  series  of  plateaus 
of  various  altitudes  and  many  fertile  valleys. 
An  evidence  of  the  extent  of  these  elevated 
table-lands  may  be  formulated  when  one  real- 
izes that  Mexico  has  fifty-three  cities  located 
above  an  altitude  of  4000  feet.  Mexico  City 
in  the  valley  of  Anahuac  is  7850  feet  above  sea 
level.  The  mountains  have  many  high  peaks 
and  extinct  volcanoes,  always  covered  with 
snow,  the  chief  ones  being  Popocatepetl,  17,- 
748  feet,  Ixtaccihuatl,  16,176  feet,  and  Ajusco, 
13,628  feet. 


MEXICO  i6i 

Owing  to  the  location  of  the  country  partly 
in  the  Temperate  and  partially  in  the  Torrid 
Zones,  the  climate  is  diversified,  the  varying 
altitudes  tempering  extreme  heat,  except,  of 
course,  along  the  low  lands  near  both  coasts. 
There  are  two  seasons — the  wet  and  the  dry, 
the  times  for  the  rains  being  materially  gov- 
erned by  the  altitude  and  location,  but  gener- 
ally corresponding  respectively  to  our  winter 
months. 

The  present  population  is  about  14,000,000 
although  it  was  estimated  to  be  15,063,207  in 
1910.  The  greater  number  of  these  people 
are  unlettered  Indians,  and  mixed  breeds. 
There  are  some  negroes  about  the  coastal 
regions.  Most  of  the  business  of  the  country 
is  in  the  hands  of  the  foreigners,  Americans 
predominating,  with  many  English,  Spanish, 
French  and  Germans. 

There  are  about  16,000  miles  of  railway  in 
Mexico  in  actual  operation,  with  1000  more 
contemplated.  The  Mexican  government 
owns  8612  miles  of  road,  while  the  remainder 
is    controlled    by    private    interests.     These 


i62     SELLING  LATIN  AMERICA 

roads  form  a  network  in  the  interior,  and  lead 
from  both  coasts  and  the  United  States  toward 
Mexico  City. 

Mexico  has  no  large  rivers  suitable  for  the 
navigation  of  ocean-going  vessels  to  any  great 
distance.  She  has,  however,  much  available 
water  power,  which  is  going  to  waste,  and 
possesses  thirty-four  deep  water  ports  on  her 
eastern  shore  and  thirty-one  on  the  Pacific. 

The  chief  wealth  of  Mexico  is  in  her  mines, 
although  agricultural  products  and  the  rais- 
ing of  cattle  add  much  to  her  source  of  reve- 
nue, the  annual  value  being  estimated  at  more 
than  $200,000,000. 

The  soil  is  exceptionally  productive,  yield- 
ing coffee,  henequen,  corn,  cocoa,  tobacco, 
fruits,  beans  and  cotton.  At  one  time  much 
rubber  was  exported  and  there  are  to-day 
many  estates  of  cultivated  rubber  unable  to 
ship  their  products. 

The  forests  have  valuable  woods  and  have 
been  but  little  exploited.  In  the  north  are 
excellent  pine  forests,  while  cedar,  mahogany, 


MEXICO  163 

dye  and  many  cabinet  woods  abound  in  the 
south. 

Henequen-growing,  from  which  rope  is 
made,  is  a  prosperous  and  profitable  industry 
in  southern  Mexico.  Chicle,  the  gum  from  a 
resinous  tree,  is  found  throughout  the  tropical 
forests  of  the  country,  while  guayale,  a  sort  of 
bastard  rubber,  is  being  grown  extensively. 
Owing  to  the  troubled  condition  of  Mexico 
for  the  past  few  years,  it  has  been  impossible 
to  get  authentic  data  as  to  the  quantities  ex- 
ported in  these  various  lines. 

Over  $700,000,000  is  invested  in  mining  in 
Mexico,  of  which  sum  $500,000,000  is  Ameri- 
can, $90,000,000  English,  $10,000,000  French 
and  $30,000,000  Mexican. 

The  leading  minerals  exported  in  1912,  the 
latest  records  available,  were: 

Silver    $44,784,177 

Gold 24,952,558 

Copper    13,285,192 

Lead   3,009,060 

Antimony 859,876 

Zinc    44I5897 


i64     SELLING  LATIN  AMERICA 

The  production  of  petroleum  is  rapidly  in- 
creasing, in  1912  over  17,000,000  barrels  be- 
ing the  output  from  the  wells. 

Mexico  has  been  dependent  upon  Europe 
and  the  United  States  for  her  coal  supply,  her 
yearly  requirements  being  about  5,000,000  tons 
of  which  she  produced  from  local  mines  al- 
most 1,000,000  tons.  There  are,  however, 
enormous  deposits  of  this  commodity  and  un- 
der proper  development  Mexico  could  sup- 
ply her  own  needs  in  this  line  as  well  as  be- 
come an  exporter. 

The  local  industries  comprise  paper  mills, 
cotton-mills,  cigarette  factories,  woolen-mills, 
breweries,  sugar  refineries,  shoe,  furniture  and 
match  factories.  They  produce  only  suf- 
ficient for  home  consumption. 

Mexico  exported  goods  to  the  value  of 
$150,202,808  in  1913,  while  during  the  same 
period  her  imports  reached  the  sum  of  $97,- 
886,169,  the  United  States  buying  and  selling 
the  greater  portion  thereof. 

The    following    table    shows    the    relative 


MEXICO  165 

amounts  of  exports  and  imports  credited  to 
the  leading  mercantile  nations. 

Imports  from  Exports  to 

Country  Mexico  Mexico 

United   States    ,  $48,643,778  $116,017,854 

United  Kingdom 12,950,046  I5,573»55i 

Germany    12,610,384  8,219,009 

France    9,168,977  3,575,509 

The  monetary  system  of  Mexico  to-day  is 
completely  disorganized,  owing  to  the  issuance 
of  paper  money  by  the  many  revolutionary 
leaders.  Mexico  is  nominally  on  a  gold  ex- 
change standard  basis,  the  peso  having  a  value 
in  American  gold  of  49.846  cents.  Prior  to 
the  present  unrest  in  this  country,  there  were 
direct  banking  connections  between  Europe 
and  the  United  States. 

Some  of  the  states  and  municipalities 
charged  commercial  travelers'  taxes,  while 
others  did  not.  As  a  rule  these  fees  can  be 
evaded. 

Under  ordinary  conditions  travel  accommo- 
dations in  Mexico  are  not  bad  and  the  hotels 
passable. 


i66     SELLING  LATIN  AMERICA 

The  following  are  the  leading  cities : 

Population 

City  of  Mexico 500,000 

Guadalajara    120,000 

Pueblo 100,000 

Monterey    65,000 

San  Luis  Potosi   61,000 

Vera  Cruz    60,000 

Merida    50,000 

Guanajuanto 42,000 

Aguas  Caliente 40,000 

Morelia 40,000 

Queretero 40,000 

Zacatecas     36,000 

Chihuahua 35,ooo 

Orizaba 35,ooo 

Toluca    30,000 

Jalapa    25,000 

Saltillo    25,000 

Tampico    25,000 

Torreon    25,000 

Colima    21,000 

Campeche    20,000 

Irapuato    20,000 

Mazatlan    20,000 

Cuernavaca 15,000 

Manzanillo   12,000 

Mexico  may  be  entered  by  rail  from  the 
United   States   at  Nogales,   Ciudad   Porfirio 


MEXICO  167 

Diaz,  Ciudad  Juarez  and  Laredo.  There  are 
many  lines  of  steamships  from  Europe,  New 
York  and  Gulf  ports,  plying  to  the  larger  east- 
ern coast  cities.  Its  western  coast  is  reached 
by  direct  steamship  lines  from  San  Francisco, 
Canada  and  one  line  every  two  weeks  from 
Japan,  calling  en  route  at  China,  Hong  Kong 
and  Hawaii,  and  proceeding  down  the  west 
coast  of  South  America,  touching  at  all  the 
leading  ports  to  and  including  Coronel,  Chile. 


XIV 

CUBA 

Cuba  is  so  near  to  us  and  our  commercial 
and  political  relations  with  it  are  so  intimate 
that  it  is  worthy  of  careful  study.  It  was 
discovered  by  Columbus  on  his  first  trip  to 
America  October  28,  1498,  and  in  151 1  Diego 
Velasquez  was  appointed  its  first  Spanish  gov- 
ernor. His  principal  task  was  the  subduing 
of  the  warlike  Carib  Indians.  In  1762  when 
Spain  was  fighting  England  and  France, 
Havana  was  captured  by  the  English  who, 
when  peace  was  finally  declared,  returned  it  to 
Spain. 

Many  sporadic  attempts  at  independence 
were  made,  the  earliest  dating  from  the  be- 
ginning of  the  last  century  when  all  of  Spain's 
colonies  in  this  hemisphere  revolted.  None 
was  successful,  however,  until  American  in- 
tervention in   1898  when  Cuba  became  free 

168 


CUBA  169 

and  in  May  1902  inaugurated  her  first  presi- 
dent. 

Cuba,  situated  in  the  Atlantic  Ocean,  but  a 
few  hours  sail  from  Florida,  is  760  miles  long, 
slightly  over  90  miles  in  width  at  its  eastern 
end  and  about  20  miles  at  its  western  extremity 
with  about  2000  miles  of  coast  line  containing 
many  deep  water  harbors.  Its  area  covers 
45,881  square  miles.  Situated  38  miles  off  the 
southern  coast  of  Cuba  is  the  Isle  of  Pines, 
containing  12 14  square  miles,  with  a  popula- 
tion of  3500,  including  many  American  col- 
onists engaged  in  raising  citrus  fruits.  The 
island  is  governed  by  Cuba. 

The  chief  topographical  features  of  Cuba 
are  the  many  mountain  ranges  which  cross  and 
intersect  each  other,  the  eastern  end  being  par- 
ticularly mountainous,  with  one  peak  8600  feet 
high.  Between  the  mountains  are  many  fer- 
tile, healthful  and  beautiful  valleys  and 
plateaus. 

The  climate  varies  from  the  tropical 
warmth  of  the  coast  to  cool  on  the  plateaus  and 
on  the  mountain  sides.     The  trade  winds  do 


-^ 


I70    SELLING  LATIN  AMERICA 

much  to  modify  the  heat  and  add  to  the  agree- 
ableness  of  the  temperature.  There  are  two 
seasons,  the  wet  and  the  dry,  the  first  lasting 
from  May  to  October,  and  the  dry  the  remain- 
der of  the  year,  the  average  rainfall  being  fifty- 
four  inches.  The  thermometer  ranges  from 
60°  to  92°  Fahrenheit.  Since  the  American  in- 
vasion when  its  various  cities  were  cleaned  up 
and  made  sanitary  Cuba  claims  to  be  the  sec- 
ond healthiest  country  in  the  world,  with  a 
death  rate  of  12.69  P^^  thousand  as  against 
Australia's  12.00  per  thousand. 

Cuba's  population  is  2,457,990,  about  half  of 
whom  are  white  and  the  remainder  black  or 
mulattoes.  The  larger  percentage  of  her 
foreign  inhabitants  are  Spaniards,  who  elected 
to  remain  after  the  close  of  the  war,  and 
Americans. 

Her  government  is  of  the  republican  repre- 
sentative type,  consisting  of  a  President  and 
Vice-President,  elected  for  four  years,  and  a 
Senate  and  House  of  Representatives,  the  Con- 
stitution being  based  on  that  of  the  United 
States. 


CUBA  171 

Cuba  has  2360  miles  of  steam  railways,  over 
200  miles  of  electric  systems,  and  1246  miles 
of  excellent  macadamized  roads,  which  are 
probably  unsurpassed  anywhere  in  the  world, 
and  are  ideal  for  automobiling,  being  over  six- 
teen feet  wide. 

Most  of  the  rivers  of  Cuba  are  short,  with 
currents  too  swift  for  navigation.  Some  of 
them  can  be  used  for  short  distances  by  shal- 
low draft  boats,  a  favorite  means  of  getting 
sugar  to  ports.  The  Cauto  is  navigable  for 
50  miles   and  the   Sagua  la  Grande  for  20 

miles. 

Sugar  is  king  in  Cuba,  the  1914  crop  being 
worth  $240,000,000,  with  only  4  per  cent,  of 
the  available  soil  under  cultivation,  and  but 
172  estates  growing  and  grinding  cane. 

Tobacco  ranks  next  in  importance,  the  an- 
nual production  averaging  $32,000,000.  This 
industry  is  centered  in  the  Province  of  Pinar 
del  Rio  which  grows  the  famous  Vuelta  Abajo 
leaf.  Much  of  this  tobacco  is  made  into 
cigars  and  cigarettes  in  the  country,  the  local 
factories  exporting  in  1913  $13)878,436  worth 


172     SELLING  LATIN  AMERICA 

while  leaf  tobacco  amounting  to  $17,604,299 
was  shipped  abroad  in  the  same  time. 

Although  the  groves  are  young  and  have  not 
reached  full  bearing  yet,  citrus  fruits  and  vege- 
tables to  the  extent  of  $10,000,000  were 
shipped  in  1913.  Pineapples,  henequen, 
cedar,  mahogany,  bananas,  mangoes,  figs, 
cocoanuts,  tamarinds,  guavas,  and  honey  val- 
ued at  $8,000,000  are  annually  exported. 

In  191 1,  there  were  1074  mines  registered 
with  the  government,  including  iron,  copper, 
gold,  mercury,  lead,  zinc,  antimony,  coal,  as- 
bestos, asphalt  and  manganese,  the  total  pro- 
duction of  which  in  1913  amounted  to  $5,068,- 
449,  iron  being  the  chief  metal  exported, 
valued  at  over  $4,000,000. 

Excellent  opportunities  exist  for  truck- 
farming,  bee-culture,  lumbering,  and  cattle- 
raising.  Good  markets  for  all  these  products 
prevail  throughout  Cuba  and  also  in  the 
United  States. 

Nearly  $400,000  worth  of  sponges  and  $50,- 
000  worth  of  tortoise  shell  are  annually  ex- 
ported. 


CUBA  173 

In  1913  Cuba  exported  goods  valued  at 
$165,135,059;  her  imports  in  the  same  year  be- 
ing $143,826,829.  Her  export  trade  has  in- 
creased 140  per  cent,  in  ten  years  and  her  im- 
ports 82  per  cent.  Since  Cuba  has  been  a  re- 
public her  foreign  commerce  has  increased 
250  per  cent. 

The  United  States  takes  85  per  cent,  of 
Cuba's  exports,  and  supplies  her  with  about  60 
per  cent,  of  her  requirements;  the  United 
Kingdom  receiving  11  per  cent,  Germany  2 
per  cent.,  France  i  per  cent,  and  Spain  which 
formerly  controlled  this  trade  but  four-tenths 
of  one  per  cent  England  exports  13  per  cent, 
Spain  8  per  cent,  Germany  7  per  cent  and 
France  6  per  cent  of  Cuba's  imports. 

Cuba  requires  foodstuffs,  textiles,  shoes, 
machinery,  tools,  hardware,  chemicals,  drugs, 
toilet  and  paper  materials.  The  main  articles 
of  import,  and  their  value,  last  year  were: 

Potatoes   $  1,897,066 

Condensed  Milk   2,165,766 

Flour    4,327,806 

Lard 6,148,827  - 


174    SELLING  LATIN  AMERICA 

Hams    $  735,918 

Wines  and  Liquors Ij473,39I 

Cotton  Goods   12,648,470 

Shoes    4,980,055 

Cuba  has  just  established  its  own  coinage. 
Its  monetary  system  is  on  a  gold  basis.  The 
unit  is  the  gold  peso,  worth  exactly  one  dollar, 
United  States  money.  A  silver  fractional 
currency,  with  subsidiary  coins  resembling 
our  nickel,  two  and  one  cent  pieces,  is  em- 
ployed, these  also  being  the  equivalent  in 
value  of  American  money  of  the  same  de- 
nomination. Formerly  American  currency 
was  in  use,  and  the  possibilities  are  that  it  will 
continue  to  be  accepted  at  its  face  value 
through  the  island. 

Banking  houses  in  close  association  with 
American  financial  institutions  are  numerous 
here  and  every  modern  facility  in  this  connec- 
tion is  afforded.  American  capital  is  largely 
invested  in  various  enterprises;  England  and 
Canada  are  also  well  represented  here. 

Commercial  travellers  pay  no  tax  in  Cuba, 
and  samples  are  admitted  duty  free. 


Population 

Pinar  del  Rio  . 

.  .      53,000 

Santa  Clara   .  . 

.  .      48,000 

Guantanamo  .  . 

.  .      45,000 

Trinidad 

.  .      31,000 

Cardenas 

.  .      30,000 

Guanabacoa    .  . 

.  .      27,000 

CUBA  175 

Travel  is  convenient  and  comfortable  and 
the  hotels  fairly  good,  especially  in  the  cities. 
The  following  places  should  be  visited : 

Population 

Havana 350,000 

Matanzas    75, 000 

Cienfuegos    75,ooo 

Camaqiiey 70,000 

Manzanillo 56,000 

Santiago    55, 000 

Cuba  may  be  reached  by  rail  or  w^ater 
routes,  it  now  being  possible  owing  to  an  ocean 
ferry  via  Florida  to  land  in  Havana  in  the 
sleeper  in  which  one  left  New  York. 

There  are  22  steamers  a  week  from  the  lead- 
ing ports  of  the  United  States  for  Cuba,  in 
addition  to  others  regularly  from  Europe  and 
Mexico.  There  are  weekly  ships  from  New 
York,  Boston,  New  Orleans,  Mobile  and 
Galveston  to  Havana.  There  is  also  direct 
daily  service  between  Tampa,  Florida  and 
Havana. 


XV 

SANTO  DOMINGO 

The  Dominican  Republic  occupies  the 
eastern  and  larger  section  of  the  island  known 
as  Santo  Domingo  or  Haiti. 

This  island  was  discovered  by  Columbus  on 
his  first  voyage  December  6,  1492.  The 
peaceable  aborigines  whom  he  found  on  land- 
ing were  so  abused  under  the  Spanish  rule, 
that  by  the  year  1500  fully  90  per  cent,  had 
died  and  the  colonists  turned  to  Africa  for 
slaves  to  work  their  estates,  4000  being  brought 
here  in  1517. 

French,    Dutch    and    English    buccaneers 

made  this  island  their  rendezvous  owing  to  its 

favorable  location.     France  recognized  them 

as  constituting  a  state  in  1630  and  gave  them 

the  protection  of  the  home  government.     In 

1697  France  secured  control  over  the  western 

176 


SANTO  DOMINGO  177 

half  of  the  island,  and  in  1795  obtained  by 
treaty  the  remaining  portion. 

In  1809  Spain  and  France  were  at  war,  and 
Spanish  rule  was  again  established  on  the  is- 
land.    The  Spanish-speaking  section  of  this 
territory  declared  its  independence  of  Spain 
in  1 82 1  and  in  1822  the  Haitians  acquired  con- 
trol of  the  entire  island,  governing  it  until 
1844,  when  as  the  result  of  a  rebellion  in  1846 
Santo  Domingo  became  independent,  remain- 
ing so  until  1 86 1  when  again  fearing  conquest 
she  petitioned  Spain  to  direct  her  destinies. 
Following  a  revolution  in  1863,  Spanish  rule 
terminated  in  1865,  the  country  since  being 
known  as  the  Dominican  Republic.     Upris- 
ings and  revolutions  followed  each  other  and 
foreign  debts  accumulated  to  such  an  extent 
that  European  invasion  was  threatened.     In 
1907  the  United  States  undertook  to  admin- 
ister the  affairs  of  the  government  through 
American  officials,  cancelling  each  year  from 
the  revenues  of  the  country  a  portion  of  its 
foreign  debt,  using  another  portion  for  inter- 
nal national  improvements. 


178     SELLING  LATIN  AMERICA 

The  present  constitution  provides  for  a 
President  as  an  executive  and  a  Senate  and 
Chamber  of  Deputies  for  legislative  purposes. 

The  island  of  Santo  Domingo,  or  Haiti,  is 
about  400  miles  long  and  160  wide,  its  shores 
possessing  numerous  deep-water  bays  and  in- 
lets. Four  almost  parallel  mountain-ranges  ex- 
ist within  its  boundaries,  one  peak,  Mt.  Tina, 
being  10,300  feet  in  altitude.  These  moun- 
tains form  an  excellent  watershed,  resulting 
in  many  creeks  and  streams,  but  few  navigable 
and  those  only  for  very  light  draft  boats. 

Along  the  coast  and  in  the  lowlands,  the 
heat  is  extreme,  Haiti  being  much  warmer 
than  Santo  Domingo.  The  high  lands  of  the 
interior  and  the  plateaus  between  the  moun- 
tains are  pleasant  and  healthful.  Continuous 
sea  breezes  add  materially  to  the  comfort  of 
the  inhabitants. 

The  Dominican  Republic  has  an  area  of  19,- 
325  square  miles  and  a  population  of  673,611, 
mostly  blacks  or  mulattoes.  There  is  a  small 
white  foreign  population,  numbering  perhaps 


10,000. 


SANTO  DOMINGO  i79 

There  are  i6o  miles  of  railway,  partially 
under  government  ownership,  and  250  miles  of 
railway  privately  owned  and  used  in  connec- 
tion with  the  larger  sugar  estates. 

There  exist  exceptional  opportunities  for 
cattle  and  goat  raising.  Lumbering  of  hard, 
dye  and  cabinet  w^oods  could  be  profitably  de- 
veloped. Gold  is  washed  from  the  rivers  in 
small  quantities  and  some  copper,  iron  and  sil- 
ver are  found. 

Cane  is  extensively  grown  throughout  the 
island,  the  amount  exported  in  1912  being  $5,- 
841,357.     Cocoa  is  largely  raised,  the  crop  last 
year   yielding   $4,248,724.     Tobacco,    coffee, 
beeswax,   honey,   bananas,   lignum-vitae,   dye 
woods,   mahogany,   gums,   resins,   hides   and 
copra  form  the  other  leading  items  of  its  ex- 
ports which  in  1913  amounted  to  $12,385,248. 
In  the  same  period  her  imports  were  $8,- 
217,898,  consisting  of  cotton  goods  valued  at 
$2,000,000,  iron   and  steel,  $1,400,000,  meat 
and  butter  $660,000,   flour   $450,000,   drugs 
$225,000,  paper  $125,000,  and  soap  $100,000. 
Last  year  this  country  used  16,221,141  pounds 


i8o     SELLING  LATIN  AMERICA 

of  rice,  94.5  per  cent,  of  which  came  from  Ger- 
many, a  land  that  does  not  grow  a  pound  of 
this  cereal. 

The  United  States  takes  considerably  more 
than  50  per  cent,  of  this  country's  exports,  and 
ships  it  about  70  per  cent,  of  its  requirements, 
Germany  ranking  next,  followed  by  England 
and  France. 

Santo  Domingo  has  no  currency  of  its  own, 
but  uses  American  money.  An  American 
bank  in  Santo  Domingo  City  exists,  being  the 
only  financial  institution  in  the  country,  and 
affords  every  facility  in  monetary  matters. 
Credits  are  fairly  good  and  detailed  informa- 
tion will  be  supplied  by  the  bank. 

Travelers  pay  no  tax  and  samples  are  ad- 
mitted duty  free. 

The  chief  cities  are: 

Population 

Santo  Domingo    30,000 

Santiago    15,000 

Puerto  Plata 10,000 

San  Pedro  de  Macoris 7,000 

Sanchez   5,000 


SANTO  DOMINGO  i8i 

The   Clyde   S.    S.   Company    (American) 
maintains  a  semi-monthly  service  from  New 
York  touching  all  the  ports  of  the  Republic. 
There  are  many  European  lines  calling  at 
the  various  ports  also. 


XVI 

HAITI 

Much  of  the  history  of  Haiti  is  associated 
with  its  neighbor,  Santo  Domingo,  and  need 
not  be  again  told.  After  the  French  had  es- 
tablished their  government  in  this  island  they 
imported  negroes  from  Africa  as  slaves. 
These  revolted  in  1791  and  in  1801  declared 
their  independence,  finally  expelling  the 
French  in  1804.  This  land  has  been  the  scene 
of  much  bloodshed  and  lacks  stability  in  its 
government,  as  it  always  will  until  taken  under 
the  control  of  some  strong  power. 

Its  geography  and  climatic  conditions  are 
the  same  as  those  of  Santo  Domingo,  its  area 
of  10,200  square  miles  supporting  a  popula- 
tion estimated  at  2,000,000,  French  or  a 
^^patois^'  being  the  language  spoken.  Perhaps 
95  per  cent,  of  its  inhabitants  are  negroes,  or 

have  negro  blood.     The  country  is  backward. 

182 


HAITI  183 

But  few  attempts  have  been  made  to  modern- 
ize it  and  it  is  to-day  one  of  the  most  hopeless 
nations  of  this  hemisphere.  About  75  miles 
of  railways  are  in  operation.  No  navigable 
streams  exist.  There  are  no  roads,  travel  in 
the  interior  being  over  trails.  The  natives 
are  ignorant,  uneducated  and  in  some  portions 
of  the  land  are  supposed  to  practice  cannibal- 
ism. There  are  two  seasons — a  rainy  and  a 
dry — the  rainy  lasting  from  April  to  Novem- 
ber. 

Haiti's  chief  products  are  coffee,  40,000 
tons  of  which  were  exported  last  year,  cocoa, 
dye  woods  and  cabinet  woods,  medicinal 
gums,  rubber,  castor  oil  bean  and  bark  for 
tanning.  Her  exports  of  $17,300,000  for  1913 
were  divided  as  follows: 

France    $8,500,000 

Germany    6,400,000 

United    Kingdom    1,300,000 

United   States 1,100,000 

while  her  imports  for  the  same  period 
amounted  to  $8,700,000,  credited  to  the  fol- 
lowing nations : 


i84     SELLING  LATIN  AMERICA 

United   States    $6,500,000 

France    800,000 

United    Kingdom    , .  -630,000 

Germany    530,000 

Others    240,000 

Her  requirements  are  for  flour,  rice,  food- 
stuffs, candles,  oil,  cotton  goods,  shoes,  hats, 
and  tools. 

The  country  is  retrograding  and  there  is  no 
inducement  to  capital  to  revive  its  exhausted 
financial  condition. 

The  monetary  system  is  in  a  hopeless  tangle, 
and  is  on  an  inconvertible  paper  basis,  a 
gourde  the  unit  of  value,  fluctuating  from  20 
to  24  cents,  U.  S.  Gold.  There  has  been  some 
talk  of  placing  its  finances  on  a  gold  basis, 
but  this  is  visionary.  There  is  one  bank — 
Banque  Nationale  de  la  Republique  d'Haiti, 
financed  by  American  money,  but  it  has  been 
closed  by  the  government.  No  one  can  au- 
thoritatively state  with  certainty  as  to  the  out- 
come in  consequence  of  this  condition  of  af- 
fairs. Credits  should  be  closely  watched. 
Owing  to  the  heavy  national  debt  and  the  in- 


HAITI  185 

ability  of  the  government  to  administer  its 
affairs,  it  is  quite  possible  that  the  United 
States  will  sooner  or  later  be  forced  to  play 
the  role  it  is  at  present  doing  in  Santo  Do- 
mingo. 

There  is  a  tax  for  travellers  but  by  arrange- 
ment with  some  of  the  petty  municipal  author- 
ities the  full  sum  need  not  be  paid.  Samples 
are  supposed  to  be  free. 

Haiti  may  be  reached  from  New  York  via 
the  Clyde  Line  (American)  which  disem- 
barks its  passengers  in  Santo  Domingo. 
Tramp  steamers  or  coasting  vessels  may  there 
be  taken  to  Haitian  ports,  or  one  may  go  di- 
rectly by  the  Royal  Dutch  West  India  Mail 
line  sailing  twice  a  month  from  New  York. 

The  principal  cities  of  Haiti  are: 

Population 

Port  au  Prince 65,000 

Jeremie    35>ooo 

Cape  Haitien    30,000 

Aux  Cayes    25,000 

Mole  St.  Nicholas 12,000 


XVII 

PORTO  RICO 

Porto  Rico  was  discovered  by  Columbus  in 
1493,  and  colonized  by  Ponce  de  Leon  in 
1509.  Because  the  greater  percentage  of  the 
population  of  the  island  speak  Spanish  and 
have  the  traits,  desires  and  inclinations  of  that 
race,  it  may  be  briefly  considered  despite  the 
fact  that  it  has  been  an  American  possession 
since  1898.  Within  another  25  years  prac- 
tically all  of  its  1,120,000  inhabitants  will  be 
able  to  speak  or  understand  English,  which  is 
now  taught  in  all  the  schools,  education  being 
compulsory.  A  large  portion  of  the  popula- 
tion are  negroes  and  mulattoes.  There  are  . 
also  many  Americans  and  Europeans. 

The  island  is  100  miles  long  and  35  wide, 

containing  2,300,000  acres  of  which  but  24  per 

cent,    is   under   cultivation.     It   is   extremely 

mountainous  toward  the  interior,   one  peak 

reaching  a  height  of  3700  feet,  the  lowland  on 

186 


PORTO  RICO  187 

which  sugar  is  cultivated  being  along  the 
coast.  The  climate  is  warm  but  equable  and 
comfortable,  the  trade  winds  moderating  any 
tendency  toward  excessive  heat.  Porto  Rico 
is  a  land  of  continual  summer,  and  maintains 
its  extreme  verdure  owing  to  its  rainfall  which 
has  an  annual  average  of  77.30  inches. 

Porto  Rico  has  about  500  miles  of  steam 
railways,  and  nearly  1000  miles  of  excellent 
roads.  There  are  no  navigable  rivers,  but 
many  good  harbors. 

Its  government  is  under  the  control  of  the 
Insular  Board  of  the  United  States  War  De- 
partment, a  governor  being  appointed  by  the 
President  of  the  United  States.     The  Gov- 
ernor has  as  Council,  six  resident  American 
officials,  and  six  natives,  who  with  a  House  of 
Delegates  of  35  members,  constitute  the  Leg- 
islative Assembly,  the  veto  power  being  held 
by  the  Executive;  legislation  is  subject  to  the 
final  revision  of  the  Congress  of  the  United 
States.     A    Resident    Commissioner    to    the 
United  States  having  a  seat  in  Congress  is 
elected  by  the  people  every  two  years. 


i88     SELLING  LATIN  AMERICA 

Since  the  yoke  of  Spain  was  cast  off  the 
island  has  progressed  wonderfully  under 
American  management.  In  1904  its  exports 
amounted  to  $16,250,000  and  had  grown  to 
the  enormous  sum  of  $43,000,000  in  19 14, 
while  its  imports  in  1904  were  $13,000,000; 
they  had  increased  in  10  years  to  $35,500,000. 
Its  development  and  prosperity  have  been 
steadily  upward.  Owing  to  the  fact  that  it 
has  free  trade  with  the  United  States,  we  do 
most  of  its  business,  last  year  taking  $34,400,- 
000  of  its  exports  and  sending  it  $31,750,000 
of  its  imports. 

Its  chief  exports  are: 

Sugar   (400,000  tons) .  ., $28,000,000 

Tobacco     (170,000,000    cigars,     12,000,000 

packs  cigarettes)    5,000,000 

Coffee  (20,000  tons) 7,000,000 

Fruits      (oranges,     pineapples,     grape-fruit, 

cocoanuts) 3,000,000 

Porto  Rico  is  essentially  an  agricultural 
country  and  will  remain  so.  Cattle  can  be 
raised.     There  are  no  mineral  resources. 

Its  requirements  are  for  foodstuffs,  flour, 


PORTO  RICO  189 

meats,  tools,  fertilizer,  oil,  machinery,  cement, 
structural  iron,  vegetables,  dried  fruits,  and 
fish,  cotton  goods,  shoes,  wines  and  liquors, 
confectionery,  butter,  and  toilet  articles. 

United  States  money  is  used  exclusively,  as 
are  also  our  systems  of  weights  and  measures. 
Direct  banking  is  done  with  the  United  States 
through  nine  banks  in  the  island. 

English  is  the  official  tongue,  Spanish  the 
popular  language. 

There  are  no  travelers'  taxes  and  samples 
pay  no  duty. 

The  following  cities  are  the  most  important: 

Cities  Population 

San  Juan 50,000 

Ponce    35,000 

Mayaguez 17,000 

Caguas     II  ,000 

Arecibo    10,000 

Fajardo    9,000 

Yauco    8,500 

Guaj^ama 8,500 

Humacao     7,000 

Aguadflla    6,000 

Cayey    5, 000 

Coamo 4,000 


I90     SELLING  LATIN  AMERICA 

Thirteen  lines  of  vessels  connect  this  island 
with  the  United  States,  four  going  direct  to 
New  York  and  providing  a  semi-weekly  mail 
service.  There  are  also  ships  to  Europe  as 
well  as  the  nearby  islands. 


XVIII 

THE  GUIANAS:      BRITISH,  DUTCH 
AND   FRENCH 

Most  travelers  ignore  British,  Dutch  and 
French  Guiana,  assuming  that  climatic  condi- 
tions are  unfavorable  and  the  small  size  of  the 
population  means  no  demand  for  goods.  The 
fact  is  that  they  are  not  unhealthful,  that  their 
credit  is  good,  their  merchants  reliable,  their 
purchasing  power  in  proportion  to  their  in- 
habitants is  excellent  and  especially  the  Dutch 
and  British  colonies  are  friendly  to  us  and 
w^hat  we  produce.  They  are  well  worth  a 
visit,  and  spend  annually  in  the  United  States 
jointly  about  $3,000,000.  Furthermore,  they 
are  easily  accessible  from  either  Trinidad  or 
Barbados. 

British  Guiana  is  by  far  the  largest  and  most 
prosperous.     This  entire  tract  was  at  one  time 

191 


192     SELLING  LATIN  AMERICA 

in  the  possession  of  Spain  and  was  under  its 
control  until  1624.  The  Dutch  in,  1648,  after 
the  close  of  their  war  with  Spain,  and  through 
one  of  their  mercantile  companies,  obtained  a 
trading  port  in  what  afterwards  became 
known  as  Dutch  Guiana.  Following  their 
move,  the  English  under  Sir  Walter  Raleigh, 
acquired  their  present  possession,  establishing 
a  town  now  known  as  Surinam,  the  English 
afterwards  giving  a  portion  of  this  territory 
to  the  Dutch  in  exchange  for  their  holdings  in 
North  America.  About  the  same  time  the 
French  established  a  colony  at  Cayenne,  and 
later  on  came  near  being  embroiled  in  a  war 
with  Brazil  over  the  boundary  line,  which 
was  finally  amicably  adjusted. 

These  three  European  colonies,  the  only 
ones  by  the  way,  in  South  America,  British 
Guiana  being  the  most  westerly,  French 
Guiana  the  eastern  and  Dutch  Guiana  be- 
tween the  others,  have  for  their  northern 
boundary  the  Atlantic  Ocean.  Venezuela  is 
the  western  neighbor  of  British  Guiana. 
Brazil  touches  each  of  these  colonies  as  their 


THE  GUIANAS  193 

southern   border,    also    forming   the   western 
boundary  of  French  Guiana. 

The  topography  of  all  of  these  possessions 
IS  similar.  Toward  the  interior  are  moun- 
tains whose  watershed  forms  many  small  rivers 
and  creeks  flowing  toward  the  Atlantic.  Be- 
tween the  mountains  and  the  ocean  are  broad 
fields  or  savannahs,  millions  of  acres  in  extent, 
which  gradually  terminate  in  the  low  lands 
near  the  sea.  In  the  highlands  and  toward  the 
mountains  of  the  interior  the  climate  is  spring- 
like, but  it  is  always  very  warm  along  the 
coast,  the  temperature  being  about  80°  Fahren- 
heit, the  entire  year.  There  is  much  rainfall 
— 100  inches  being  the  annual  average. 

British  Guiana  covers  an  area  of  90,277 
square  miles,  with  a  population  of  about  300,- 
000,  composed  of  about  160,000  coolies,  im- 
ported by  contract  from  India  and  under  the 
supervision  of  the  British  government,  the  re- 
mainder being  white,  black  and  mixed  breeds. 
The  native  Indians  have  never  been  counted 
owing  to  the  inaccessible  location  of  their  , 
settlements.     The  East  Indians  were  brought 


194     SELLING  LATIN  AMERICA 

for  the  purpose  of  working  sugar  plantations, 
labor  being  very  scarce.  There  are  also  about 
5000  Chinese. 

Georgetown  with  55,000  inhabitants  is  the 
capital,  the  other  settlements  being  Essequibo 
and  Berbice. 

The  exports  which  represent  the  country's 
products  were  in  1913  : 

Sugar    $5,250,000 

Rum   1 ,000,000 

Gold 1 ,400,000 

Balata 800,000 

Rice    500,000 

Diamonds     80,000 

Of  this  the  United  Kingdom  took  goods  worth 
$9,300,000  and  the  United  States  but  $125,000. 

During  the  same  period,  the  imports 
amounted  to  $7,750,000,  England  and  her 
colonies  supplying  $5,545,000  and  the  United 
States  $1,800,000. 

This  colony  has  about  100  miles  of  railway, 
its  many  rivers  and  creeks  sufficing  for  its  in- 
terior transportation. 

No  traveler's  license  is  required. 


THE  GUIANAS  195 

Banking  is  done  through  Canada  and 
London ;  banks  in  these  places  having  branches 
in  Georgetown  and  selling  exchange  on  New 
York.     English  or  American  money  is  used. 

Sugar  is  the  great  crop  here  and  rum,  a  by- 
product from  the  sugar  cane,  the  next  largest. 
Cattle  might  be  raised  extensively.  The  for- 
ests are  rich  in  cabinet  woods.  Cocoa,  rice, 
bananas,  rubber  and  cocoanuts  could  be  more 
extensively  grown.  There  are  some  gold  and 
a  few  diamond  mines  in  operation.  This 
colony  could  be  much  more  highly  developed. 

The  business  is  almost  entirely  in  the  hands 
of  the  British,  England  selling  about  65  per 
cent,  of  its  requirements  and  the  United  States 
25  per  cent. 

They  import  bags  and  sacks,  boots  and 
shoes,  flour,  corn  meal,  coal,  drugs  and  medi- 
cines, vegetables,  hardware,  machinery, 
clothes,  textiles,  oils,  wines  and  liquors, 
tobacco,  cigars  and  cigarettes. 

Georgetown  is  the  only  town  to  visit,  and  is 
best  reached  by  either  one  of  the  several 
steamers  sailing  from  Trinidad  or  Barbados. 


196     SELLING  LATIN  AMERICA 

Dutch  Guiana,  sometimes  called  Surinam, 
is  46,060  square  miles  in  area,  with  a  popula- 
tion of  87,500,  mostly  Indians,  negroes  and 
Javanese,  who  are  brought  out  to  work  the 
canefields.  The  proportion  of  white  is  small 
and  they  are  mostly  merchants  and  govern- 
ment employes. 

This  country  is  susceptible  of  agricultural 
development,  its  products  and  requirements 
being  the  same  as  British  Guiana.  Param- 
aribo, with  40,000  inhabitants,  is  the  capital 
and  only  town  that  will  repay  a  visit.  This 
colony  is  not  very  progressive,  and  its  trade  is 
decreasing.  In  191 2  its  exports  were  $3,500,- 
000,  mostly  sugar,  with  some  cocoa,  coffee, 
balata,  gold,  bananas  and  rum,  of  which  Hol- 
land took  $1,500,000  worth  and  the  United 
States  $900,000. 

It  imported  goods  to  the  value  of  $3,000,000, 
Holland  supplying  $1,700,000  and  the  United 
States  $700,000. 

There  are  opportunities  here  but  for  some 
reason  the  colony  has  been  neglected,  the  capi- 
tal, Paramaribo,  having  no  modern  conveni- 


THE  GUIANAS  i97 

ences,  not  even  a  water  supply,  although  it  is 
ideally  located  for  sewerage  and  aqueducts. 

Dutch  money  is  in  use,  although  Amer- 
ican and  English  is  accepted.  Merchants 
maintain  accounts  in  New  York  or  Europe  for 
their  requirements.  Credits  are  good.  Eng- 
lish is  spoken  by  all  business  men. 

The  Royal  Dutch  West  Indies  Mail  direct 
from  New  York  has  two  sailings  a  month  for 
this  colony.  It  is  also  accessible  from  Trini- 
dad, Curagao,  and  Barbados. 

French  Guiana  has  49,000  square  miles  of 
territory,  with  a  population  of  about  13,500, 
some  8,500  of  which  are  convicts,  as  this  is  a 
penal  settlement.  Capt.  Dreyfus  was  confined 
here  on  Devil's  Island.  This  is  the  least  de- 
veloped and  less  promising  of  these  colonies. 
There  is  little  agriculture  and  less  cattle  rais- 
ing. Whatever  trade  there  is  is  controlled  by 
France. 

In  191 2  the  exports  were: 

Gold $2,000,000 

Phosphate     55,ooo 

Balata     20,000 


198     SELLING  LATIN  AMERICA 

Rosewood  oil $        46,000 

Rosewood     19,000 

Cocoa  and  hides   2,400,000 

Most  of  this  was  shipped  direct  to  the  mother 
country. 

Of  the  imports  of  $2,000,000,  70  per  cent, 
came  from  France,  our  share  being  $300,000. 
It  is  doubtful  if  our  trade  here  could  be  ma- 
terially increased.  Cayenne  is  the  only  town 
to  visit,  and  may  be  best  reached  from  Trini- 
dad or  from  the  French  possession  of  Mar- 
tinique or  Guadaloupe.  French  money  is  in 
use  and  while  dealers  give  drafts  on  Paris  or 
London,  most  of  them  having  business  with 
New  York,  do  so  through  some  branch  of  the 
Credit  Lyonnais. 

No  traveler's  fee  is  required.  French  is 
spoken. 

All  of  these  possessions  are  ruled  by  of- 
ficials sent  from  the  motherland  for  a  term  of 
years. 


XIX 

EUROPEAN  POSSESSIONS  IN  THE  WEST 

INDIES 

Four  European  countries,  England,  France, 
Holland  and  Denmark,  have  possessions  in 
the  West  Indies.  They  are  readily  accessible, 
cleanly,  attractive,  hospitable,  and  v^ill  repay 
a  visit  both  for  business  and  for  pleasure.  All 
of  them  are  dependent  on  the  outside  v^orld 
for  their  staples  and  food  supplies,  and  to-day 
are  receiving  great  attention  at  the  hands  of 
the  Canadian  merchant,  v^ho  has  in  many  in- 
stances supplanted  us,  especially  in  such  neces- 
sities as  flour,  dried  fish,  butter,  potatoes, 
onions,  cheese  and  fruits.  Their  trade  is  well 
worth  catering  to,  and  much  of  it  can  be  di- 
verted into  American  channels.  With  the  ex- 
ception of  Martinique  and  Guadeloupe,  Eng- 
lish is  spoken  universally,  even  in  the  Dutch 

and  Danish  islands. 

199 


200     SELLING  LATIN  AMERICA 

The  Dutch  colony  of  Curacao  coPxSists  of 
the  island  of  that  name,  and  the  adjacent  is- 
lands of  Bonaire,  Aruba,  St.  Eustache,  Saba 
and  the  southern  part  of  St.  Martin,  the  north- 
ern portion  belonging  to  France.  These  is- 
lands are  small  and  situated  about  60  miles  off 
the  coast  of  Venezuela  to  the  north,  having  a 
total  area  of  403  square  miles,  Curacao  being 
the  largest,  and  about  30  miles  long  with  an 
area  of  210  square  miles.  They  are  mostly 
all  of  coral  formation  and  cannot  raise  enough 
food  for  the  sustenance  of  their  50,000  inhabi- 
tants, 30,000  of  whom  reside  in  Curacao. 

Wilhelmstadt  with  25,000  is  the  capital  and 
the  residence  of  the  Dutch  Governor.  It  is 
well  equipped  for  coaling  and  provisioning 
ships,  being  a  free  port,  and  as  it  is  in  the 
beaten  path  of  travel  from  Europe  to  the  Pan- 
ama Canal  its  future  seems  bright. 

The  inhabitants  of  these  islands  are  poor 
whites  who  have  intermarried  and  a  few 
blacks.  Curacao,  however,  is  the  home  of 
many  wealthy  Jew^s,  whose  forefathers  were 
banished  from  Portugal,  these  islands  having 


EUROPEAN  POSSESSIONS      201 

formerly  belonged  to  that  country.  They  are 
all  merchants  or  traders,  owning  coasting 
vessels  that  ply  along  the  Latin  American 
shores  and  the  other  islands.  Their  credit  is 
good  and  they  are  thoroughly  up-to-date  in 
their  business  methods. 

While  Dutch  money  is  used,  American, 
English,  French,  German  and  other  currency 
is  received  at  the  current  rate  of  exchange. 
There  are  no  government  banks,  but  each  mer- 
chant has  credits  in  the  United  States  or  Eu- 
rope and  buys  and  sells  exchange  against  it. 

The  total  exports  of  these  islands  are  less  than 
$1,000,000  yearly,  $300,000  representing  coal 
brought  from  the  United  States  and  resold  to 
steamers.  Many  straw  hats  made  from  fibre 
imported  from  Venezuela  and  Colombia  are 
exported,  the  yearly  production  being  about 
$350,000.  Aloes  to  the  extent  of  $70,000  and 
dividivi,  a  dye  wood,  to  the  value  of  $25,000, 
with  hides,  skins,  and  a  native  lace  are  the 
chief  exports.  Aruba  ships  some  phosphate 
rock  and  has  one  small  gold  mine  in  operation. 
Much  smuggling  is  done  into  Latin  America. 


202     SELLING  LATIN  AMERICA 

This  group  imports  about  $2,000,000, 
$500,000  coming  from  the  United  States, 
$250,000  from  Holland  and  the  remainder 
from  the  leading  European  nations.  They 
require  flour,  rice,  beans,  onions,  garlic,  corn- 
meal,  condensed  milk,  medicines,  oil,  candles, 
tinned  foods,  soups,  hams,  cottons,  shoes  and 
hardware. 

No  duty  or  fees  for  travelers  are  charged. 

The  ''Red  D"  (American)  Steamship  Line 
has  a  ship  a  week  from  New  York  to  Curacao, 
and  the  other  islands  can  be  reached  by  coast- 
ing boats  from  this  port. 

The  Danish  West  Indies  consist  of  three 
small  islands  in  the  Caribbean  sea,  St. 
Thomas,  St.  Croix  and  St.  John,  their  total 
area  being  138  square  miles,  with  a  popula- 
tion of  about  25,000,  mostly  negroes,  a  few 
mulattoes  and  some  European  officials.  St. 
Thomas,  the  largest  in  the  group  and  about 
26  miles  from  Fajardo,  Porto  Rico,  is  used 
as  a  coaling  station  for  Hamburg-American 
ships  in  the  Latin  American  trade.  Its  im- 
ports  of  $1,000,000  in   191 3   are  chiefly  ac- 


EUROPEAN  POSSESSIONS     203 

counted  for  by  one  item — coal  from  the 
United  States  amounting  to  $550,000.  Much 
bay  rum  is  distilled  here.  The  Panama  Canal 
may  revive  the  trade  of  this  island,  owing  to 
its  location  in  the  lane  of  steamship  travel. 

St.  Croix,  w^ith  14,000  people  in  its  81 
square  miles  of  area,  raises  sugar  and  cotton. 
They  also  make  considerable  rum. 

The  United  States  in  191 3  exported  $600,- 
000  of  St.  Thomas's  $1,000,000  imports  and 
$550,000  of  St.  Croix's  $800,000  worth  of  im- 
ports. 

No  fees  are  charged  in  these  islands  for 
commercial  travelers. 

American  money  is  used  here  as  much  as 
Danish.  There  are  no  banks,  merchants 
maintaining  credits  in  New  York  or  Euro- 
pean markets  from  the  sale  of  their  exports 
and  drawing  against  them.  English  is  spoken 
universally. 

The  Quebec  Steamship  Company  sailing 
from  New  York  connects  with  St.  Thomas; 
the  other  islands  being  reached  by  coasting 
vessels  from  this  point.    There  are  many  op- 


204     SELLING  LATIN  AMERICA 

portunities  from  San  Juan,  Porto  Rico,  to 
get  to  St.  Thomas. 

These  people  buy  from  us  coal,  food  stuffs, 
flour,  dried  fish,  candles,  oil,  rice,  onions, 
beans,  shoes,  clothing,  boots,  medicines,  soaps 
and  other  staples. 

The  French  islands  in  the  Caribbean  Sea 
are  Martinique  and  Guadeloupe,  and  they  im- 
port their  requirements  from  the  mother  coun- 
try, owing  to  the  fact  that  such  goods  pay  no 
duties.  The  town  of  St.  Pierre,  Martinique, 
with  its  entire  population  of  70,000  inhabi- 
tants was  totally  destroyed  by  an  eruption 
from  the  extinct  volcanoe  of  Mt.  Pelee,  May 
8,  1902.  Josephine,  the  first  wife  of  the  Great 
Napoleon,  was  born  at  Fort  de  France,  Mar- 
tinique. 

We  sell  these  colonies  some  food  stuffs,  oils 
and  necessities,  our  yearly  sales  to  Martinique 
being  about  $700,000  and  to  Guadeloupe 
about  $900,000. 

Martinique  raises  sugar  and  manufactures 
rum,  her  sugar  production  being  about  $3,- 
000,000  yearly,  and  her  rum  export  equalling 


EUROPEAN  POSSESSIONS     205 

$2,000,000     annually.     Guadeloupe     exports 

about  $3,000,000  yearly,   mostly  cocoa,   bay 

leaves,  and  vanilla  beans. 

The    natives    all    speak   French,    and    are 

mostly  negroes  and  half-breeds,  with  the  usual 
admixture  of  French  officials  and  soldiers. 
Guadeloupe  has  about  1200  square  miles  and 
a  population  of  160,000,  while  Martinique 
possesses  an  area  of  380  square  miles  with 
about  200,000  inhabitants. 

The  smaller  islands  of  Marie  Galante,  St. 
Barts  and  half  of  St.  Martins  also  belong  to 
France  and  get  their  supplies  from  either 
Martinique  or  Guadeloupe. 

The  Quebec  Steamship  Company  maintains 
a  direct  service  between  New  York  and  these 
islands,  connections  for  the  smaller  ports 
being  made  by  coasting  vessels.  France  also 
has  a  line  of  ships  from  Europe  direct. 

The  British  West  Indies  are  made  up  of  the 

following  islands: 

Trinidad  and  Tobago,  Jamaica  and  Turks 
Island,  with  Caicos  Islands  and  Caymans; 
Barbados;  the  Leeward  Islands,  consisting  of 


2o6     SELLING  LATIN  AMERICA 

Antigua,  St.  Kitts,  Barbuda,  Redonda,  Vir- 
gin Islands,  Nevis,  Anguilla,  Montserrat  and 
Dominica;  the  Windward  Islands  compris- 
ing Granada,  Grenadines,  St.  Vincent,  and 
St.  Lucia;  the  Bahamas  and  Bermuda. 

Of  these  islands  the  population  perhaps 
numbers  1,500,000,  mostly  blacks,  and  mulat- 
toes,  with  a  small  percentage  of  white  officials 
and  merchants.  The  larger  islands  of  Ja- 
maica with  900,000  people,  Barbados  with 
200,000  and  Trinidad  with  300,000  are  the 
only  ones  worth  visiting  for  business  purposes, 
as  merchants  in  these  places  have  trading  con- 
nections with  residents  of  the  smaller  locali- 
ties. Kingston  in  Jamaica,  Georgetown  in 
Barbados,  and  Port  of  Spain  in  Trinidad  are 
the  only  large  cities,  and  have  good  hotels  and 
prosperous  business  houses. 

English  is  spoken  exclusively  everywhere 
and  American  money  accepted  at  its  face  value 
as  readily  as  English  currency  in  all  these  pos- 
sessions. The  larger  islands  have  branches  of 
Canadian  and  English  banks  with  direct  con- 
nection in  New  York.     Credits  are  good. 


EUROPEAN  POSSESSIONS     207 

In  1913  the  exports  were  as  follows: 

Trinidad  and  Tobago $26,000,000 

Jamaica  and  her  outlying  Islands .  .  11 ,000,000 

Barbados 5,000,000 

Leeward  Islands   2,800,000 

Windward  Islands   2,900,000 

Bahamas     1,300,000 

$49,000,000 

Trinidad,  (with  Tobago,  twenty  miles  dis- 
tant) ,  1754  square  miles  in  area,  is  perhaps  the 
most  important.  Of  the  $26,000,000  it  should 
be  noted  that  $11,000,000  was  for  coal,  trans- 
shipped and  not  produced  in  the  country, 
thereby  reducing  her  actual  productive  power 
in  money  to  $15,000,000.  Her  chief  exports 
w^ere  as  follows : 

Cocoa   $7,000,000 

Sugar    2,000,000 

Asphalt     1,300,000 

Petroleum    400,000 

Cocoanuts     500,000 

in  addition  to  copra,  rum  and  molasses.  Of 
these  exports  the  United  States  took  $7,000,- 
000,  France  $2,500,000,  England  $2,400,000, 
Canada  $875,000,  and  Germany  $675,000. 


2o8    SELLING  LATIN  AMERICA 

Her  imports  in  1913  were  $13,750,000,  Eng- 
land supplying  $4,500,000;  the  United  States 
$4,000,000,  Canada,  $1,250,000,  France  $300,- 
000  and  Germany  $200,000. 

Both  England  and  Canada  are  favored  by  a 
preferential  tariff. 

Jamaica  covers  an  area  of  4424  square  miles. 
Its  exports  in  191 3  were  $1 1,000,000  as  against 
$14,000,000  in  imports.  Her  chief  exports 
are: 

Bananas $5,000,000 

Logwood    850,000 

Coffee     750,000 

Cocoanuts    650,000 

Rum 500,000 

Sugar    260,000 

Ginger    180,000 

Tobacco   1 80,000 

Of  these  the  United  States  took  $6,200,000, 
Great  Britain  $2,000,000,  France  $750,000, 
Canada  $425,000  and  Germany  $425,000. 

Jamaica's  chief  export  is  bananas,  almost  all 
of  which  are  taken  by  the  United  States,  who 
in  return  sells  her  50  per  cent,  of  her  imports, 
England,  Canada  and  Germany  following  in 


EUROPEAN  POSSESSIONS      209 

the  order  named  with  $5,300,000,  $1,300,000, 
and  $340,000  respectively  to  their  credit. 

Jamaica  has  no  preferential  tariff  with  the 
United  Kingdom  and  will  not  have  so  long 
as  the  United  States  continues  to  be  her  best 
customer. 

Barbados'  area  of  166  square  miles  is  the 
most  densely  populated  piece  of  land  in  the 
world,  with  200,000  inhabitants.  It  imported 
$6,500,000  worth  of  goods  in  1913  and  ex- 
ported $2,600,000.  It  is  a  great  coaling  sta- 
tion for  ocean  vessels,  its  trade  in  this  line  alone 
amounting  to  $2,400,000  last  year. 

The  United  States  took  $330,000  of  its  pro- 
duction in  1913  and  sold  it  goods  to  the  extent 
of  $1,850,000.  England  controls  most  of  its 
trade.  Its  chief  articles  of  export  are  sugar, 
rum  and  molasses. 

The  following  table  shows  the  imports  and 
exports  of  the  chief  of  the  remaining  islands: 

Islands  Imports  Exports 

St.  Kitts  and  Nevis $1,250,000  $    950,000 

Antigua    830,000  850,000 

Dominica    720,000  735,000 

Montserrat     150,000  180,000 


2IO     SELLING  LATIN  AMERICA 

Islands  Imports  Exports 

Granada   1,350,000  1,800,000 

St    Lucia   1,500,000  550,000 

St.  Vincent    . ., ,  600,000  550,000 

All  of  these  islands  have  a  preferential  duty 
treaty  with  Canada  and  Great  Britain,  despite 
which  our  own  sales  with  them  in  19 13  were 
about  $2,000,000. 

Sugar  and  rum  are  their  chief  products. 
Dominica  and  Montserrat  export  limes,  lime 
juice  and  citrate  of  lime.  Granada  and  St. 
Lucia  export  cocoa,  and  St.  Vincent's  chief 
product  is  arrow-root.  Last  year  St.  Lucia 
supplied  135,000  tons  of  coal  to  vessels,  most 
of  which  came  from  the  United  States. 

The  Bahama  group,  of  which  Nassau  with 
13,000  population  is  the  capital,  exported  last 
year  goods  valued  at  $1,300,000,  of  which 
amount  $850,000  was  in  sponges  and  $350,000 
in  sisal,  the  United  States  taking  $620,000 
worth.  The  imports  in  the  same  period  were 
$2,000,000,  of  which  we  supplied  $1,400,000. 

Bermuda,  20  miles  square  with  3,000  inhabi- 
tants, depends  for  its  existence  upon  the  tour- 


EUROPEAN  POSSESSIONS     211 

ists  who  visit  it  and  what  we  purchase  from 
and  ship  to  its  shores.  Its  chief  exports  are 
Easter  lilies,  potatoes  and  early  vegetables, 
4,000  out  of  12,000  acres  being  under  cultiva- 
tion, yielding  the  islands  $500,000  yearly.  Of 
its  $2,775,000  imports  this  country  supplied 
$1,600,000,    England   $750,000   and   Canada 

$350,000. 

None  of  these  islands  is  self-sustaining. 
They  need  the  necessities  of  life;  flour,  food- 
stuffs, hams,  meats,  vegetables,  butter,  lard, 
candles,  oil,  shoes,  cotton,  textiles,  drugs,  soaps, 
toilet  articles,  glassware,  machinery  and  corru- 
gated iron. 

The  Quebec  Steamship  Company  and  the 
Royal  Mail  Steamship  Company,  sailing  from 
New  York,  stop  at  the  leading  cities  of  the 
larger  islands,  an  inter-island  steamship  serv- 
ice being  provided  for.  The  Lamport  and 
Holt  line  touches  both  at  Trinidad  and  Barba- 
dos on  their  northward  trip  and  the  United 
Fruit  Company  boats  stop  at  Jamaica.  The 
Hamburg-American  Line  ships  call  at  many 
of  these  islands. 


XX 

FOREIGN  TRADE  WITH   LATIN  AMERICA  AND 
HOW   IT  DEVELOPED 

No  military  campaign  was  ever  planned 
with  such  exactness  of  detail  and  precision  as 
that  which  characterized  the  preliminary 
movements  of  the  exporting  nations  of  Europe 
to  acquire  control  of  Latin  American  markets. 
When  the  Franco-Prussian  war  was  over  and 
the  Powers  of  the  Old  World  had  settled  down 
to  a  development  of  their  resources,  it  soon  be- 
came apparent  that  foreign  fields  must  be 
sought  in  which  to  dispose  of  the  excess  prod- 
ucts of  their  industry.  With  that  object  in 
view  governments,  trade  associations,  manu- 
facturers, shippers,  exporters,  civic  and  social 
societies,  colleges,  merchants,  and  individuals 
united  in  one  harmonious  movement  to  ac- 
complish this  purpose.  While  each  nation 
followed  more  or  less  the  same  general  plan, 

212 


TRADE  WITH  LATIN  AMERICA    213 

still  Germany  attacked  the  problem  with  the 
thoroughness  so  typical  of  its  people  that  its 
course  in  this  direction  may  be  taken  as  an  ex- 
ample of  what  should  be  done  in  similar  con- 
tingencies, and  it  may  be  well  worth  mention- 
ing in  detail. 

To  impress  the  Latin  American  people  that 
their  trade  was  courted  by  the  nation  as  well 
as  the  individual  producer,  government  com- 
missions were  dispatched  from  Europe  to  each 
of  these  countries,  when  possible  in  a  war 
vessel  of  the  nation  sending  them.  With  much 
pomp  and  great  ceremony  visits  were  ex- 
changed between  the  members  of  this  body  and 
the  authorities  ashore  and  every  effort  made  to 
develop  a  national  feeling  of  regard  between 
both  parties,  very  much  the  same  as  we  did 
when  Commodore  Perry  opened  up  Japan 
to  the  world.  Much  time  was  spent  in  each 
country  and  nothing  was  overlooked  that 
might  be  of  any  aid  to  accomplish  the  object 
in  view. 

Following     these     emissaries     from     the 
European  Power  came  officials  of  trade  bodies 


214     SELLING  LATIN  AMERICA 

and  business  organizations,  college  professors 
and  writers,  each  one  studying  the  situation 
from  his  particular  point  of  view  and  noting 
the  things  most  required  and  the  methods  un- 
der which  business  was  conducted.  One  of 
the  subjects  given  the  most  complete  and  far 
reaching  attention  was  the  question  of  banking 
relations  and  how  to  best  develop  this  impor- 
tant field,  for  it  was  early  seen  that  this  would 
form  the  most  essential  link  in  the  perfected 
chain  of  business  success.  In  the  meantime 
the  home  government  had  caused  to  be  printed 
throughout  its  territory,  full  and  specific 
facts  regarding  the  countries,  the  nature  of 
their  soils,  everything  obtainable  about  the 
flora  and  fauna,  their  mountains  and  minerals, 
the  various  waterways,  climatic  conditions  and 
what  crops  could  be  grown  with  profit,  with 
complete  data  concerning  business  opportuni- 
ties. Commercial  schools  were  opened 
wherein  the  student  was  taught  Spanish  and 
Portuguese,  and  perfectly  drilled  in  Latin 
American  business  methods  and  etiquette. 
Realizing  that  much  of  their  future  success  in 


TRADE  WITH  LATIN  AMERICA    215 

these  lands  would  be  dependent  upon  having 
colonies  throughout  them,  every  ejffort  was 
made  to  encourage  emigration,  the  official  au- 
thorities knowing  full  well  that  affection  for 
the  Fatherland  and  a  belief  in  the  superiority 
of  its  products,  would  materially  help  in  the 
dissemination  of  its  goods  and  keep  up  a  de- 
mand for  home  made  articles,  until  they  had 
through  their  own  merit  obtained  a  foothold 
among  the  natives.  As  a  direct  result  of  this 
plan  of  colonization,  fully  one-fourth  of  the 
population  of  Chile  are  either  German  or  of 
German  descent,  and  the  southern  section  of 
this  country  reminds  one  more  of  a  portion  of 
Germany  in  its  type  of  building,  the  char- 
acteristics of  the  inhabitants,  their  dress,  the 
nature  of  their  business  and  their  modes  of 
living  than  of  a  Latin  nation.  The  same  is 
also  true  in  the  southern  part  of  Brazil,  where 
the  Germans  have  many  colonies,  each  pro- 
vided with  public  schools  in  which  natives 
are  really  taught  German  before  acquiring 
their  mother  tongue. 

The    real    ambassador   of   commerce — the 


2i6     SELLING  LATIN  AMERICA 

traveling  man — courteous,  polite,  affable, 
familiar  with  trade  customs,  national  manner- 
isms, and  speaking  both  Spanish  and  Portu- 
guese perfectly  was  on  the  scene  early,  paying 
particular  attention  to  the  demands  of  the 
merchant.  If  a  certain  style  of  cloth  was  too 
wide,  the  obliging  German  made  it  of  the  di- 
mensions required.  If  the  color  was  too  sub- 
dued for  the  aboriginal  customer  of  the  native 
merchant,  the  pattern  and  pigment  were 
changed  to  suit  the  buyer.  If  plows  were  re- 
quired with  one  handle  instead  of  two,  so  that 
the  farmer  could  have  the  other  free  for 
manipulating  his  cigarette,  his  wish  was  cheer- 
fully complied  with.  The  idea  that  filled  the 
mind  of  the  salesmen  from  Europe  was  to 
give  the  customer  just  what  he  wanted,  and 
this  rule  was  never  deviated  from.  No  at- 
tempt was  made  to  force  the  storekeeper  to 
adopt  the  customs  of  Europe  in  anything,  but 
stress  was  laid  on  the  fact  that  their  only  ob- 
ject was  to  oblige  in  every  way  the  buyer,  and 
cater  to  his  demands.  The  suggestion  from 
the  storekeeper  that  he  got  six  months'  time 


TRADE  WITH  LATIN  AMERICA    217 

from  England's  manufacturers,  on  this  line  of 
goods,  was  combated  with  the  unanswerable 
argument  that  the  seller  would  be  pleased  to 
bill  the  order  at  eight  months  if  desired. 

Samples  of  native-made  articles  that  sold 
well  were  also  purchased  by  the  wide-awake 
representatives  and  sent  home  with  full  and 
complete  data  as  to  price,  cost  of  manufacture, 
quantities  consumed,  and  any  other  useful  hint 
that  practical  observation  might  suggest,  so 
that  those  in  Germany  might  have  an  oppor- 
tunity to  experiment  with  a  view  to  reducing 
the  cost  of  the  article  and  thereby  obtain  com- 
mercial control  of  this  particular  line.  In  a 
word,  no  stone  was  left  unturned  to  accom- 
plish the  object  always  in  view,  namely — the 
complete  capture  of  these  markets. 

As  orders  began  to  come  in  and  were  ready  * 
for  exportation  Germany  suddenly  realized 
that  she  was  confronted  with  a  problem  which 
she  had  not  seriously  considered  before — that 
of  a  national  merchant  marine.  Without 
ships  this  vast  business,  now  practically  ac- 
quired, was  at  the  mercy  of  the  foreigner  who 


2i8     SELLING  LATIN  AMERICA 

had   vessels    in   which    to    convey   it   to    the 
markets  across  the  seas.     With  the  exorbitant 
freight    rates   which   were   beginning   to   be 
charged,  as  cargoes  multiplied  and  ships  be- 
came scarce,  it  became  obvious  that  all  this 
newly  secured  trade  would  be  seriously  jeopar- 
dized, if  not  completely  lost,  unless  the  entire 
situation  was  under  the  absolute  control  of  the 
Government  and  in  the  hands  of  the  German 
people.     Accordingly  the  State  took  up  the 
question,  and  to  make  a  long  story  short,  the 
result  was  the  development  of  the  enormous 
German  merchant  marine, — perhaps  the  most 
complete  and  perfect  in  the  world — with  sub- 
sidies from  the  national  treasury,  which  en- 
abled ship  owners  to  quote  a  freight  rate  per 
ton  so  low,  that  it  was  cheaper  to  ship  German 
made  goods   from   Hamburg  to  Valparaiso, 
than  from  Hamburg  to  many  of  the  interior 
cities  of  the  Fatherland  for  home  consumption. 
This  last  stroke  of  generalship  in  this  business 
campaign    for   commercial    supremacy    gave 
Germany  the  greatest  impetus  toward  reach- 
ing the  goal  upon  which  her  eyes  were  fixed, 


TRADE  WITH  LATIN  AMERICA    219 

and  as  a  result  her  export  trade  as  well  as  her 
import  trade,  increased  by  leaps  and  bounds, 
making  her  the  envy  of  all  Europe,  a  condition 
which  in  the  opinion  of  many  people  undoubt- 
edly had  much  to  do  with  precipitating  the 

European  War. 

This  briefly  is  the  story  of  how  Germany 
secured  control  of  not  only  Latin  American 
trade,  but  much  of  the  over  seas  business  of  the 
world.     In  the  republics  to  the  south  of  us  the 
national  effect  of  this  commercial  invasion  is 
very  noticeable.    Natives  were  invited  to  visit 
and  get  acquainted  with  Germans  in  Germany, 
and  when  they  accepted  were  the  recipients  of 
such  courteous  treatment  and  became  so  thor- 
oughly impressed  with  the  perfection  of  the 
German  nation  in  every  field  of  enterprise, 
that  they  returned  enthusiasts  on  the  subject. 
One  of  the  results  of  this  is  seen  to-day  in  the 
armies  of  Colombia,  Mexico,  Chile,  Argen- 
tine,  Venezuela   and   some   of   the   Central 
American  countries.     They  have  all  been  in- 
structed by  German  officers,  imported  for  the 
special  purpose  and  kindly  loaned  by  the  Ger- 


220     SELLING  LATIN  AMERICA 

man  military  authorities — a  fact  worthy  of 
serious  thought  when  we  think  that  some  day 
Germany  may  turn  covetous  eyes  upon  some 
parts  of  Latin  America.  To  see  some  of  these 
troops  march  past  with  their  peculiar  knap- 
sack, their  goose-step  and  the  pickelhaub  hel- 
met, makes  one  feel  that  one  is  in  Germany  for 
the  time  being,  anyway.  Throughout  the 
length  and  breadth  of  Central  and  South 
America  are  to  be  found  German  delicatessen 
shops  and  hotels;  German  stores  and  brewer- 
ies; German  banks  and  steamship  lines;  Ger- 
man salesmen  and  German  schools,  each  one 
dependent  on  the  Fatherland  for  supplies,  and 
in  turn  playing  an  effective  part  and  contrib- 
uting a  strenuous  share  toward  forcing  Ger- 
many to  the  front  in  every  way. 

In  developing  local  markets  their  methods 
were  equally  unique  and  practical.  I  recall 
for  instance  the  first  brewery  started  in  Vene- 
zuela. Venezuelans  knew  of  beer  in  much  the 
same  way  that  we  of  the  States  know  of  rnate, 
the  herb  used  so  extensively  in  the  Argentine, 
Uruguay  and  Paraguay,  for  making  a  bever- 


TRADE  WITH  LATIN  AMERICA    221 

age— that  is  they  had  read  about  it  and  heard 
people  refer  to  it,  but  few  really  knew  what  it 
looked  like  or  how  it  tasted.    All  were  natu- 
rally more  or  less  suspicious  of  it.     Nothing 
daunted  the  phlegmatic  Teutons  who  had  in- 
vested their  money  in  the  erection  of  the  plant 
in  pursuing  their  stolid,  predetermined  plan 
of  introducing  beer  as  a  national  beverage  in 
lieu  of  the  light  clarets  and  other  wines,  for- 
merly so  much  in  use  in  these  countries.     A 
building  on  the  most  prominent  corner  of  the 
city  of  Caracas  was  leased  and  in  it  chairs  and 
tables  were  arranged  as  in  German  beer  halls, 
while  adjacent  to  the  bar  at  which  the  beer  was 
served  direct  from  the  barrel,  was  a  lunch 
stand  which  provided  excellent  delicatessen 
food.    When  everything  was  ready,  invita- 
tions were  sent  broadcast  to  the  better  class 
families  to  come  and  accept  the  hospitality  of 
the  brewing  company  without  cost  for  the  pur- 
pose of  becoming  better  acquainted  with  the 
health  and  strength-giving  properties  of  real 
German  beer.     Physicians  were  "sampled"  m 
detail  and  told  when  to  prescribe  and  what  to 


222     SELLING  LATIN  AMERICA 

expect  from  this  wonderful  beverage  in  cer- 
tain diseases  and  especially  during  con- 
valescence. Within  a  few  months'  time  the 
saloon  became  a  rendezvous  of  the  elite.  Ul- 
timately beer  supplanted  all  other  alcoholic 
drinks  in  this  particular  city.  The  same  plan 
was  carried  out  in  other  towns  and  I  am 
certain  that  Latin  America  to-day  can  boast 
of  more  breweries,  per  capita,  than  Germany. 
Other  local  trade  problems  were  attacked 
and  solved  in  the  same  sensible,  simple  and 
practical  manner,  the  result  always  being  that 
German  products  grew  in  favor  and  in  de- 
mand. 

England,  France  and  Italy  of  course  devel- 
oped their  business  in  these  lands  along  much 
the  same  lines,  but  none  of  these  nations 
showed  the  deliberately  planned  aggressive- 
ness and  solidarity  of  purpose,  or  the  deter- 
mined unity  of  spirit  that  animated  the  Ger- 
man. England  did  more  to  establish  her  con- 
nections throughout  Latin  America  along  the 
path  of  extensive  investments  in  national  and 
local  securities,  the  building  of  railroads,  the 


TRADE  WITH  LATIN  AMERICA    223 

dredging  of  harbors  and  erection  of  docks, 
while  France,  relying  upon  the  admitted  and 
acknowledged  fact  that  all  the  civilized  world 
looked  to  her  for  its  fashions,  styles,  millinery, 
articles  of  clothing  and  dress,  toilet  goods,  and 
luxuries,  very  naturally  took  advantage  of  ex- 
isting conditions  and  used  this  as  a  foundation 
on  which  to  erect  her  trade.     Whatever  com- 
mercial prestige  either  Spain  or  Portugal  ac- 
quired in  these  countries  was  due  almost  en- 
tirely to  the  presence  of  thousands  of  citizens 
of  these  nations,  who  created  a  demand  for  ar- 
ticles of  home  production,  and  this  is  rela- 
tively small. 

In  this  simple  but  thorough  manner  was  the 
trail  to  business  success  in  this  field  blazed. 
The  experiences  of  our  predecessors,  and  the 
lessons  they  learned  should  stand  us  in  good 
stead  in  our  efforts  and  help  to  direct  our  feet 
from  all  possible  pitfalls.     In  fact  we  should, 
by  following  and  improving  on  their  attempts, 
if  this  be  possible,  acquire  a  commercial  su- 
premacy in  this  territory  in  less  than  half  the 
time  taken  by  the  Europeans. 


XXI 

METHODS  OF  DOING  BUSINESS 

The  question  of  what  method  to  employ  in 
developing  a  business  in  Latin  America  de- 
pends primarily  upon  your  capital  and  the  na- 
ture of  your  product.  Obviously  v^e  manu- 
facture numerous  things  that  these  countries 
cannot  use.  Many  of  our  manufacturers  seem 
to  be  totally  unaware  of  the  goods  suitable  for 
these  markets  or  their  peculiar  requirements. 
I  have  met  a  man  in  Brazil  selling,  or  rather 
trying  to  sell,  snow  plows.  It  is  quite  appar- 
ent that  no  amount  of  exploitation  or  argu- 
ment could  possibly  produce  results  with  such 
a  commodity.  With  the  exception  of  a  few^ 
of  the  more  southerly  cities  of  South  America, 
and  some  located  in  the  highest  mountains 
it  would  be  useless  to  send  a  representative  to 
these  fields  for  the  purpose  of  introducing  a 

heating    system,    no    matter    what   virtue    it 

224 


A  Comparison  of  Climates 


THIS  map  shows  South  America  with 
its  cities  and  countries  placed  just  as 
far  to  the  north  of  the  Equator  as 
they  naturally  lie  to  the  south  of  it, 
in  order  to  enable  comparison  at  a  glance  of 
the  climatic  relationship  between  the  United 
States  and  the  South  American  markets. 
The  effect  is  the  same  as  if  the  map  of  the 
Western  Hemisphere  were  folded  together 
at  the  Equator  and  the  impression  of  the 
South  American  part  transferred  upon  the 
map  of  North  America.  The  longitudinal 
position  of  every  part  of  South  America  is 
thus  correct. 

The  map  at  first  glance  would  lead  one 
to  say  that  Argentina  has  a  range  of  cli- 
mate equal  to  that  from  the  City  of  Mexico 
to  Hudson  Bay,  but  the  climate  of  South 
America  can't  be  judged  that  way.  A  cold 
ocean  current  along  the  West  Coast  and  i. 


warm  one  along  the  East  Coast  greatly 
modify  it.  The  altitudes  of  parts  of  the 
continent  within  the  tropical  zone  also  tem- 
per the  heat.  The  extreme  north  of  Argen- 
tina is  described  as  having  the  clinjate  of 
Southern  Florida.  The  mean  annual  tem- 
perature at  the  very  southermost  part  of 
Argentina  is  said  to  be  about  that  of  Maine 
with  a  minimum  hardly  lower  than  the 
moderate  one  of  Puget  Sound  and  a  maxi- 
mum no  higher  than  that  of  Nova  Scotia. 
All  Argentina  is  said  not  to  have  the  ex- 
treme range  of  temperature  found  in  the 
United  States.  Going  to  show  how  greatly 
ocean  currents  offset  latitude,  the  islands 
of  Great  Britain  are  also  drawn  in  on  the 
map  in  their  position  relative  to  the 
Equator.  London  is  farther  north  than  the 
northermost  spot  in  the  United  States  ex- 
clusive of  Alaska. 


{Reprinted  by  pertnission  of  the  editor  of  The  Americas,  published  by  the  National 

City  Bank  of  Neiv   York). 


METHODS  OF  DOING  BUSINESS    225 

might  have.     I  know  of  an  American  canoe 
manufacturing  concern  advertising  its  wares 
in  a  portion  of  the  Argentine  which  is  abso- 
lutely dry  and  without  navigable  water,  as  a 
result  of  which  imported  bull  frogs  die  of  old 
age  without  ever  having  a  swim.     It  therefore 
behooves  one  to  make  a  full  and  exhaustive  in- 
vestigation through  all  possible  sources  of  in- 
formation, and  ascertain  if  one's  goods  are 
really  appropriate  for  these  lands.     Another 
point  worthy  of  consideration  is  that  wares 
especially  adapted  to  the  uses  of  some  coun- 
tries may  be   totally  unfit  for  others.     Ac- 
curate preliminary  data  of  a  reliable  nature 
may  generally  be  obtained  by  addressing  the 
United  States  Consuls  located  at  the  various 
seaports   of   the   Latin   American   countries. 
These  gentlemen  are  especially  equipped  for 
obtaining  all  the  information  necessary,  and 
are  charged  by  the  United  States  Government 
to  supply  complete  details  to  inquirers. 

The  wisest  and  best  plan,  once  you  are  deter- 
mined to  enter  these  fields,  is  for  one  of  the 
heads  of  the  firm  or  one  of  the  leading  officers 


226     SELLING  LATIN  AMERICA 

of  the  company  to  make  a  preliminary  tour 
through  the  lands  in  question  for  the  purpose 
of  studying  the  situation  and  ascertaining  the 
demands  existing  for  similar  lines.  On  such 
a  trip  prices  should  be  carefully  observed, 
strict  attention  paid  to  duties,  freight  and  other 
incidental  charges.  It  is  by  noting  and  study- 
ing these  conditions  that  you  will  be  able  to 
meet  and  overcome  competition.  Special 
care  should  be  exercised  in  giving  the  natives 
just  what  they  want  and  not  in  trying  to  foist 
on  them  the  thing  you  wish  them  to  have,  even 
should  it  be  better,  cheaper  and  more  practic- 
able. With  this  object  in  view,  local  dealers 
and  merchants  should  be  interviewed  and  care 
taken  to  ascertain  every  detail  that  might  pos- 
sibly have  any  bearing  on  your  future  market- 
ing plans.  Being  thoroughly  prepared  in  ad- 
vance helps  materially  in  smoothing  the  road 
to  be  travelled.  Samples  of  competing  lines 
with  prices  and  minute  data  of  all  kinds  should 
be  sent  to  the  home  office  for  reference  pur- 
poses. 

It  will  soon  be  apparent,  assuming  that  the 


METHODS  OF  DOING  BUSINESS    227 

official  or  representative  who  has  gone  over 
the  field  finds  it  pregnant  with  possibilities, 
that  your  business  in  Latin  America  may  be 
conducted  upon  one  of  the  following  lines: 

First.  The  opening  of  your  own  branch 
house  for  each  country,  or  for  a  group  of  coun- 
tries. 

Second.  Establishing  an  exclusive  agency 
for  each  country  with  a  resident  merchant 

therein. 

Third.  Selling  through  your  own  repre- 
sentative directly  and  conducting  your  own 
shipping  and  banking. 

Fourth.  Marketing  your  article  through 
some  American  export  commission  house. 

Fifth.  Exploiting  your  goods  through  your 
own  representative  and  turning  the  account 
over  to  a  local  or  native  commission  house  or 
merchant  for  forwarding  the  goods  and  col- 
lecting for  the  same. 

Sixth.  Uniting  with  several  manufacturers 
in  allied  lines  and  sending  one  salesman  to 
represent  you,  on  a  co-operative  plan. 

Which  of  these  particular  forms  of  intro- 


228     SELLING  LATIN  AMERICA 

duction  is  best  adapted  to  your  special  line  is  a 
matter  for  you  alone  to  determine.    , 

Assuming  that  your  capiral  and  commodity 
warrants  you  in  establishing  a  branch  house 
in  each  individual  country  or  in  a  group  of 
countries,  which  is  by  far  the  best  plan  of  con- 
ducting your  business,  the  question  of  prime 
importance  is  that  you  should  be  located  in  or 
near  the  leading  seaport  in  order  that  you  may 
be  close  to  shipping  as  well  as  to  be  able  to 
superintend  personally  the  discharge  of  goods 
and  their  clearance  through  the  slow  moving 
native  custom  houses.  Great  care  should  be 
taken  to  be  on  the  leading  line  of  railway,  or 
near  as  many  different  lines  as  possible  in 
order  to  facilitate  the  forwarding  of  goods  to 
their  destination  and  to  the  interior.  These 
are  vital  factors  and  should  be  carefully 
weighed  in  determining  your  location.  If 
your  business  is  one  requiring  the  carrying  of 
a  large  and  varied  stock,  it  will  be  rather  diffi- 
cult to  get  proper  warehousing  accommoda- 
tions especially  in  the  metropolis  or  port  and 


METHODS  OF  DOING  BUSINESS    229 

it  may  be  necessary  to  erect  your  own  building 
for  this  purpose. 

The  adoption  of  this  system  of  introducing 
a  line  of  goods  requires  careful  planning  and 
too  much  stress  cannot  be  laid  upon  the  selec- 
tion of  a  tactful  and  experienced  manager  for 
your  venture.     Banking  arrangements  must  be 
made.     Municipal  and  state  taxes  must  be  pro- 
vided for  and  the  thousand  and  one  details  at- 
tended to  that  are  unknown  and  unheard  of  in 
this  country,  each  one  of  which  requires  pa- 
tience and  tact  in  solving  and  means  the  ex- 
penditure of  money  and  the  apparent  wasting 
of  much  time.     In  other  words  the  initial  ex- 
pense involved  is  far  greater  than  a  similar 
undertaking  would  be  in  the  United  States  or 
Europe  and  only  a  business  yielding  large 
profits  can  be  expected  to  withstand  the  im- 
mense financial  drains  to  be  incurred.     While 
the  salaries  of  the  native  office  help  will  be 
comparatively  smaller  than  the  prices  paid  in 
the  United  States,  still  there  will  be  noted  an 
increased  cost  in  maintaining  a  travelling  force 


230    SELLING  LATIN  AMERICA 

as  well  as  the  necessary  American  employes  of 
the   staff.     Transportation   charges    are   high 
and  the  cost  of  a  salesman  on  the  road  in  any 
of  these  lands  means  fully  double  the  expenses 
of   a   similar   man   in   this   country.     Travel 
facilities  are  poor,  distances  between  markets 
long  and  much  time  must  be  consumed  in  each 
city  visited,  especially  in  the  preliminary  trips, 
all  of  which  increases  the  cost  of  the  traveller, 
and  for  the  first  few  years  makes  him  a  rather 
expensive  luxury.     This  must  be  submntted  to 
with  patience  for  upon  his  efforts  depends  your 
success.     It  therefore  follows  that  the  business 
to  be  done  must  be  a  large  one  to  afford  such 
preliminary  charges   and   its   future  outlook 
must  be  of  the  brightest  character.     That  such 
agencies  can  be  maintained  at  a  profit  however 
is  proved  by  the  fact  that  all  the  large  houses 
of  Europe  prefer  doing  business  along  this 
line,  and  within  comparatively  recent  years 
this  is  the  method  being  employed  by  the  big 
American  houses  and  corporations  venturing 
into  these  territories.     The  Standard  Oil  Com- 
pany, the  Vacuum  Oil  Company,  The  Singer 


METHODS  OF  DOING  BUSINESS    231 

Sewing  Machine  Company,  The  National 
Cash  Register  Company  and  many  of  the 
larger  mercantile  houses  and  manufacturing 
concerns  maintain  their  own  branch  offices  in 
the  principal  cities  of  the  Latin  American 
countries  and  are  entirely  satisfied  with  the  re- 
sults. 

The  establishment  of  your  own  agency  in  a 
country  indicates  to  the  public  your  intention 
to  become  a  portion  of  the  native  business  com- 
munity and  gives  you  a  solid  standing  with  the 
trade  besides  bringing  you  in  closer  and  more 
intimate  touch  with  the  consumer.  It  has 
many  other  advantageous  features  which  must 
be  apparent. 

Should  your  business  not  warrant  such  an 
outlay,  the  next  best  method  of  approaching 
the  situation  is  the  appointing  of  some  high- 
grade,  resident  merchant,  either  foreign  or  na- 
tive, in  each  country,  as  your  exclusive  repre- 
sentative. It  is  obviously  unnecessary  to  state 
that  in  making  such  a  selection  the  greatest 
care  should  be  taken  to  investigate  most  thor- 
oughly the  business  reputation  and  financial 


232     SELLING  LATIN  AMERICA 

standing  of  the  one  appointed.  Very  often  it 
is  wisest  to  give  your  agency  to  some  small, 
young  aggressive  firm,  wirh  limited  capital, 
rather  than  to  a  staid  old  house  w^ith  much 
money  and  prestige.  These  suggestions  are 
given  for  v^hat  they  are  worth.  Common 
sense  will  indicate  the  concern  which  in  your 
good  judgment  is  best  adapted  to  represent 
you  properly.  Old  established  houses  gener- 
ally have  the  capital  and  means  to  introduce 
goods  through  the  country  and  will  often  guar- 
antee to  place  a  certain  amount  of  business 
within  the  year  upon  conditions  to  be  speci- 
fied. Once  you  have  placed  your  agency,  be 
sure  to  turn  over  all  inquiries  or  orders  re- 
ceived from  within  their  territory  to  them  for 
their  attention.  This  I  regret  to  state  has  not 
been  typical  of  American  houses  and  has  done 
much  to  make  responsible  firms  hesitate  about 
accepting  exclusive  agencies.  A  strict  adher- 
ence to  this  suggestion  will  tend  to  establish 
your  honesty  of  purpose  and  will  be  deeply 
gratifying  to  your  local  representatives. 

The  house  accepting  your  agency  will  have 


METHODS  OF  DOING  BUSINESS    233 

its  own  salesmen  to  travel  the  country  and  to 
introduce  your  line  to  the  trade  in  addition  to 
other  appropriate  means  toward  this  end. 
They  will  be  only  too  glad  to  have  your  repre- 
sentative accompany  their  local  man  from  time 
to  time  and  are  highly  appreciative  of  such  an 
interest,  because  it  stimulates  both  the  cus- 
tomer and  their  representative  and  at  the  same 
time  gives  you  the  opportunity  of  knowing  just 
what  they  are  doing  and  what  they  have  to 
overcome  in  the  way  of  prejudice  and  compe- 
tition. It  is  always  well  to  aid  the  local 
agency  with  a  small  advertising  allowance,  to 
be  spent  as  your  combined  judgments  may  dic- 
tate. This  gives  a  further  evidence  to  them 
of  your  desire  to  go  after  the  trade  and  keeps 
their  interest  more  intense  on  your  line.  Un- 
fortunately too  many  American  houses  think 
that  it  is  unnecessary  to  spend  any  money  in 
advertising  their  goods  in  these  lands.  The 
sooner  they  take  advantage  of  the  advertising 
possibilities  afforded  by  these  virgin  fields  the 
larger  and  quicker  will  come  the  returns. 
Very  often  it  is  advisable  to  make  specific  al- 


234     SELLING  LATIN  AMERICA 

lowances  to  the  firm  holding  your  local  agency 
with  a  view  to  having  their  representatives 
make  special  trips  in  your  behalf.  These 
are,  however,  all  details  to  be  worked  out  ad- 
vantageously between  the  contracting  parties 
and  will  suggest  themselves  as  conditions  de- 
velop. 

In  the  event  of  your  organization  having  an 
export  department,  properly  equipped  to  con- 
duct correspondence  in  the  native  tongue  and 
give  direct  attention  to  the  banking  problems 
arising  as  well  as  to  shipping  and  forwarding 
it  is  advisable  to  have  your  own  traveller,  or 
travellers,  to  cover  one  or  more  of  the  coun- 
tries or  all  of  the  territory  involved.  This 
keeps  the  home  office  in  closer  touch  with  all 
the  details  of  the  business  and  is  to  be  com- 
mended in  certain  lines  of  trade  but  is  only 
advisable  when  one's  foreign  department  is 
thoroughly  perfected  and  in  the  hands  of  a 
competent  manager. 

Orders  sent  in  by  your  traveller  will  contain 
such  complete  and  specific  instructions  as  to 
forwarding  and  banking  that  they  can  be  in- 


METHODS  OF  DOING  BUSINESS    235 

telligently  handled  at  a  minimum  of  expense 
with  your  own  force.  It  should  be  observed 
however  that  your  representatives  for  the  first 
few  years  should  make  the  entire  territory 
once  every  twelve  months  at  least,  and  oftener 
if  conditions  warrant,  in  order  to  keep  your 
goods  continually  before  the  dealers  and  to  en- 
grave upon  their  memories  that  you  are  in  the 
field  to  stay  and  wish  to  cater  to  them  and  their 

wants. 

If  conditions  are  such  that  you  cannot  afford 
a  personal  representative  the  commission  ex- 
port house  offers  opportunities  for  bringing 
your  goods  to  the  attention  of  the  native  dealer. 
There  are  many  of  these  concerns  situated  in 
all  of  the  larger  cities  of  the  United  States; 
New  York,  New  Orleans  and  San  Francisco 
being   especially  well   provided  with   them, 
owing  to  the  fact  that  they  are  the  largest 
ports  in  the  East,  South  and  West  respectively 
and  have  excellent  forwarding  facilities.     As 
a  rule  these  firms  are  well  supplied  with  capi- 
tal and  capable  of  rendering  effective  and  ef- 
ficient services.     They  are  open,  however,  to 


236     SELLING  LATIN  AMERICA 

the  one  objection  that  most  naturally  they  will 
give  the  greatest  attention  to  the  line  yielding 
them  the  largest  profit,  and  just  how  to  induce 
them  to  handle  your  goods  to  the  exclusion  of 
other  competitors  is  a  problem  to  be  solved  by 
you  with  the  concern  you  decide  to  use  for 
your  purposes.  Furthermore,  it  should  be 
your  express  duty  to  see  positively  that 
your  customer  is  thoroughly  protected  against 
the  commission  house  making  any  additional 
charges  or  increasing  the  original  price  quoted 
by  you  to  your  client.  This  has  been  a  com- 
mon practice,  and  has  had  the  effect  of  tend- 
ing to  retard  business  and  prejudice  trade  in 
these  lands. 

As  a  rule  these  agents  pay  cash  for  goods 
when  delivered,  a  feature  which  has  its  attrac- 
tions to  the  manufacturer  or  merchant  work- 
ing on  a  limited  capital  and  requiring  his 
money  promptly.  Their  financial  connections 
are  of  a  kind  that  enable  them  to  do  this, 
allowing  a  very  small  commission  for  their 
trouble.  In  addition  to  all  these  features  they 
have  a  corps  of  experts  familiar  with  shipping 


METHODS  OF  DOING  BUSINESS    237 

procedures,  insurance  problems,  the  routing 
of  freight,  packing,  banking,  as  well  as  the  de- 
tails of  foreign  correspondence  so  that  much 
of  the  complications  and  annoyances  of  the 
export  trade  is  taken  from  your  shoulders  and 
borne  by  men  familiar  with  the  entire  subject. 
Every  few  months  it  is  the  custom  of  many  of 
these  organizations  to  send  their  representa- 
tives through  the  entire  Latin  American  terri- 
tory with  the  idea  of  developing  trade  and  re- 
ceiving orders.     There  can  be  no  question  as 
to  their  place  in  this  field  or  as  to  their  general 
efficiency,  and  it  is  always  well  to  discuss  with 
some  high  class  commission  export  house  what 
they  can  offer  your  particular  line  when  con- 
templating the  possibilities  of  doing  business 

in  these  lands. 

A  few  American  merchants  have  found  it 
expedient  to  sell  goods  through  their  own  rep- 
resentatives, turning  the  accounts  over  for  de- 
livery to  some  local  concern  for  the  purpose  of 
forwarding  the  goods  and  making  the  collec- 
tions thereon.  While  this  may  be  advisable 
under  some  conditions,  still  it  is  not  a  practice 


238     SELLING  LATIN  AMERICA 

to  be  commended  and  is  only  warranted  when 
the  local  or  native  commission  agent  is  of  a 
high  grade  and  financially  responsible  and 
where  the  purchaser  is  likely  to  impose  upon 
the  buyer  through  some  of  the  many  methods 
in  vogue  among  a  certain  type  of  small  native 
business  men. 

Rather  than  entrust  the  future  of  one's  busi- 
ness in  the  export  field  with  an  inferior  repre- 
sentative, it  would  be  better  to  co-operate  with 
several  manufacturers  in  allied  lines,  and  send 
one  man  to  represent  the  entire  group.  It  is 
questionable  if  one  traveller  could  do  justice 
to  more  than  five  or  six  lines  and  they  for  ob- 
vious reasons  should  be  related  to  each  other, 
the  principal  idea  being  to  economize  the  time 
and  expenses  of  the  one  handling  them.  For 
example,  a  representative  might  carry  neck- 
ties, shirts,  collars,  socks,  and  men's  under- 
wear and  hats,  or  such  lines  as  corsets,  stock- 
ings, ladies'  underwear  and  shirt  waists  might 
be  effectively  presented  by  one  salesman. 

The  strictest  care  should  be  taken  in  the 
selection  of  the  person  to  represent  each  group 


METHODS  OF  DOING  BUSINESS    239 

of  merchants  and  under  no  circumstances 
should  lines  which  might  sooner  or  later  de- 
velop into  competing  ones  be  allowed  to  be 
carried. 

Such  an  arrangement  appeals  particularly 
to  the  smaller  manufacturer  or  merchant  in 
that  it  brings  his  goods  to  the  attention  of  the 
foreign  dealer  at  a  minimum  of  cost  with  a 
maximum  of  efficiency  and  paves  the  way  for 
developing  the  market.  Many  of  the  leading 
sellers  in  Latin  America  to-day  had  their  start 
along  this  line  of  co-operative  selling. 

Whatever  medium  you  may  feel  it  wise  to 
select  in  entering  these  fields,  bear  in  mind  the 
fact  that  under  no  circumstances  should  your 
representative  overstock  the  buyer  with  goods. 
It  is  far  better  to  receive  small  orders  at  first 
than  to  sell  large  ones  which  may  move  slowly. 
Climatic  conditions  are  such  that  in  Latin 
America  many  goods,  unless  sold  quickly, 
rapidly  deteriorate  and  the  consequent  loss  will 
fall  on  the  individual  merchant  and  result  in 
complaints  from  the  buyer  if  he  becomes  the 
possessor  of  damaged  goods,  thereby  prejudic- 


240     SELLING  LATIN  AMERICA 

ing  your  article  in  his  sight.  The  salesman  in 
thus  cautioning  a  dealer  will  exhibit  his  ma- 
terial interest  in  the  future  welfare  of  the  mer- 
chant and  more  thoroughly  establish  a  sub- 
stantial business  friendship  with  his  client. 

In  many  of  the  countries  of  Latin  America, 
owing  to  their  enormous  extent  and  lack  of 
travel  facility,  as  well  as  the  exorbitant  local 
freight  rates  and  great  distances  to  be  traversed 
it  is  often  wise  to  establish  more  than  one 
agency.  In  Brazil  for  example,  it  might  be 
well  to  place  agencies  in  Rio  de  Janeiro, 
Santos,  Bahia,  Pernambuco,  and  Para,  for  the 
simple  but  sufficient  reason  that  the  freight  on 
goods  from  New  York  to  any  of  these  ports  di- 
rect, is  less  than  the  local  freights  between 
many  of  these  cities.  To  get  from  Callao, 
Peru,  on  the  west  coast  to  Iquitos  on  the 
eastern  boundary  of  that  republic  is  a  difficult 
problem.  It  is  really  quicker,  cheaper  and 
far  more  convenient  and  comfortable  to  come 
first  to  New  York,  then  go  to  Brazil  and  up 
the  Amazon,  to  Iquitos,  than  to  undertake  the 
hazardous  journey  of  many  weeks  across  the 


1  T     ■) 


«  ^     ">    5  o 


->    »  •>       y     3  • 


c 

c 
c 

C 


c 


METHODS  OF  DOING  BUSINESS    241 

risky  overland  trails  through  the  interior  of 
Peru.  Assuming  that  you  were  desirous  of 
giving  an  agency  for  some  special  line  of  mer- 
chandise liable  to  be  a  good  seller  in  the  east- 
ern frontier  of  Peru  as  v^ell  as  throughout  the 
republic,  one  agency  should  be  placed  in 
Callao,  or  Lima  and  the  other  in  Iquitos.  In 
Chile,  it  is  likewise  often  advisable  to  place  an 
agency  for  goods  in  one  of  the  northern  ports 
of  the  republic  as  well  as  in  Valparaiso,  or 
Santiago,  either  Iquique  or  Antofogasta  being 
selected  for  this  purpose,  as  being  best  adapted 
to  reach  the  center  of  the  nitrate  industries. 

Many  of  the  Central  American  countries, 
particularly  Nicaragua,  Guatemala,  and  Hon- 
duras, as  well  as  Mexico,  having  seaboards  on 
both  coasts  will  present  problems  for  deter- 
mining the  location  of  agencies  accessible  to 
both  oceans.  These  and  other  conditions  will 
be  continually  arising.  After  discussing  the 
matter  with  your  factor  or  your  representa- 
tive, common  business  judgment  will  be  the 
only  safe  and  sane  rule  to  warrant  you  in 
reaching  a  decision. 


XXII 

THE  SALESMAN  AND  THE  CUSTOMER 

The  success  or  failure  of  a  business  venture 
in  Latin  America  depends  materially  on  the 
character  of  the  representative  sent  to  these 
marts  of  trade.  Never  having  seen  or  heard 
of  you  or  your  goods,  it  is  most  natural  for  the 
foreign  merchant  to  make  his  deductions  from 
your  emissary. 

The  typical  ambassador  of  commerce  for 
South  American  fields  should  combine  ele- 
gance of  dress  and  courtliness  of  manners;  be 
a  linguist;  a  scholar;  a  diplomat;  a  philos- 
opher; always  a  student  and  a  business  man  as 
w^ell.  He  should  continually  bear  in  mind 
that  his  visit  is  unsolicited — that  in  a  sense  he 
is  an  aggressor,  an  intruder,  and  above  every- 
thing he  should  conform  to  the  usages  that  cus- 
tom has  established  in  this  part  of  the  world. 

European  merchants   and  their  travellers, 

242 


SALESMAN  AND  CUSTOMER    243 

with  the  hope  of  strengthening  their  position 
have  spread  about  the  unwarranted  idea  that 
the  Yankee  is  tricky  in  all  his  dealings  and  this 
condition  must  at  all  times  be  combated  not 
theoretically  but  obviously  and  practically. 
Be  frank  with  prospective  customers.  Do  not 
try  to  load  them  up  with  goods.  Keep  your 
agreements  to  the  letter.  Live  up  to  your  con- 
tract even  if  you  lose  money  by  doing  so.  Fol- 
low exactly  whatever  shipping  instructions  are 
given. 

After  an  initial  visit  to  a  possible  client  it  is 
advisable  to  develop  his  social  side.  Ascer- 
tain to  what  clubs  he  belongs  and  get  put  up 
at  them,  so  that  an  opportunity  may  arise  to 
see  him  after  the  cares  that  infest  the  day  are 
gone.  You  will  find  the  Latin  American  a 
gentleman,  a  past  master  of  the  art  of  etiquette, 
a  Chesterfield  in  matters  of  decorum  and  an 
agreeable  companion.  He,  like  ourselves,  has 
his  weaknesses.  Find  what  they  are  and  cater 
to  them.  He  will  be  responsive,  after  he  gets 
to  know  you.  The  amount  of  flattery  that  he 
will  stand  for  and  assimilate  is  beyond  belief. 


244     SELLING  LATIN  AMERICA 

The  Spanish  language  is  especially  equipped 
for  the  purpose  and  provides  means  for  rais- 
ing to  its  nth  power  the  superlative  degree. 
Do  not  for  a  moment  get  the  idea  that  you  are 
dealing  v^ith  a  child,  for  though,  like  the 
Chinaman,  he  presents  a  bland  exterior,  he  is 
uncannily  v^ise.  He  knows  his  line  and  prices 
and  market  conditions.  Existing  in  a  world 
of  little  excitement,  few  amusements,  and  one 
foreign  mail  per  week,  his  mind  is  not  diverted 
and  he  unconsciously  concentrates  and  be- 
comes a  specialist  in  his  business.  Having  al- 
ways lived  thousands  of  miles  from  markets  he 
has  learned  to  prognosticate  trade  develop- 
ments years  ahead. 

He  expects  to  talk  to  you  in  Spanish  except- 
ing in  Brazil  where  the  language  is  Portu- 
guese, and  he  will  tell  you  that  100,000,000 
people  all  over  the  world  speak  in  this  tongue ; 
that  European  salesmen  converse  with  him  in 
this  tongue.  Obviously,  if  you  can  discuss 
affairs  with  him  in  his  own  idiom  you  are 
on  the  road  to  success.  He  often  speaks 
French  too,  and  if  you  cannot  talk  in  the  Ian- 


SALESMAN  AND  CUSTOMER    245 

guage  of  the  Dons  he  will  ask  you  to  do  so  in 
that  of  the  Gauls.  Only  in  the  largest  estab- 
lishments of  the  big  seaport  towns  will  one  find 
merchants  with  an  employe  or  two  familiar 
with  English.  It  is  therefore  obvious  without 
a  knowledge  of  Spanish  a  salesman  in  this  ter- 
ritory is  hopelessly  and  seriously  handicapped. 
In  fact  he  is  inefficient.  Europeans  recogniz- 
ing the  importance  of  this  employ  only  repre- 
sentatives speaking  the  languages  of  the  coun- 
tries wherein  they  travel.  I  recall  meeting  a 
German  in  Assam  talking  fluently  the  native 
tongue  and  later  ran  across  him  in  Arabia  con- 
versing in  Arabic  in  the  market  place.  Amer- 
icans have  never  been  linguists,  but  in  our 
business  lexicon  there  should  be  no  such  word 
as  ''impossible." 

I  remember  an  American  traveller  for  an 
oil  machinery  house  startling  those  in  the  din- 
ing room  of  the  leading  hotel  in  Lima,  Peru, 
by  pointing  to  the  menu  and  alternately  grunt- 
ing and  squealing  aloud.  He  could  not  talk 
Spanish.  In  a  few  moments  the  place  was  in 
an  uproar.     Some  thought  he  had  gone  crazy ; 


246     SELLING  LATIN  AMERICA 

others  that  he  was  insulting  the  Peruvians  or 
the  proprietor  of  the  hotel.  The  head  waiter 
rushed  to  me  and  asked  that  I  ascertain  what 
the  trouble  was.  Imagine  my  surprise  when 
my  countryman  in  explanation  of  his  barnyard 
impersonation  said:  ^'I  was  trying  to  tell 
these  durned  fools  that  I  wanted  ham."  Inci- 
dents like  these  are  never  forgotten;  always 
magnified  when  told  and  invariably  hurt  us 
seriously,  socially  and  otherwise.  This  little 
affair  happening  in  a  foreign  country  where 
news  is  scarce  was  talked  of  in  the  hotels,  clubs 
and  cafes,  printed  in  the  journals  and  illus- 
trated in  the  comic  papers.  Americans  were 
always  referred  to  by  each  narrator  as  uncouth 
and  the  story  gone  into  with  great  detail  and 
precision.  Grandparents  in  Peru  one  hun- 
dred years  from  now  will  be  telling  this  yarn 
to  their  grandchildren. 

I  have  long  ago  ceased  to  wonder  at  the  lack 
of  common  sense  exhibited  by  some  large 
American  houses  in  selecting  the  type  of  man 
they  employ  for  Latin  America.  I  recall  one 
well  known  concern  in  this  country  sending  a 


SALESMAN  AND  CUSTOMER    247 

man  to  sell  carbon  paper  and  typewriter  rib- 
bons who  spoke  only  English.     Of  the  man 
personally  I  will  only  state  that  by  nature  he 
was  the  very  antithesis  of  everything  he  should 
have  been.     Calling  upon  the  leading  jobber 
in  his  line  in  Bolivia  who  spoke  only  Spanish 
he  found  it  impossible  to  do  business,  and  un- 
dertook to  tell  his  prices  by  yelling  them,  a 
method  in  vogue  among  those  who  have  com- 
mand of  one  language  and  who  seem  to  feel 
that  if  you  can  repeat  loudly  in  a  crescendo 
voice,  and  with  great  precision,  what  you  have 
to  say  your  hearer  will  ultimately  by  some  oc- 
cult means  understand.     In  the  midst  of  this 
vocal  exercise  by  the  American,   a  German 
happened  to  drop  in,  also  desirous  of  selling 
the  dealer  goods,  and  kindly  offered  to  inter- 
pret for  the  Yankee,  which  suggestion  was 
eagerly  accepted.     The  gentleman  from  the 
Fatherland  was  also  selling  typewriter  sup- 
plies and  I  heard  him  afterwards  telling  his 
friends  in  the  hotel  with  much  gusto  how  he 
handled  the  matter.     I  shall  not  try  to  repeat 
the  conversation.     It  was  humiliating  for  me 


248     SELLING  LATIN  AMERICA 

to  think  what  a  fool  my  fellow  citizen  had  al- 
lowed himself  to  be  made.  When  the  Ameri- 
can said  "These  ribbons  are  $4.00  a  dozen," 
the  German  translated:  "These  ribbons  are 
$8.00  a  dozen."  The  American  salesman  told 
me  afterwards  that  he  had  written  his  house 
that  they  could  not  compete  with  European 
prices  in  this  market  and  I  am  certain  that  this 
concern  will  never  again  be  tempted  even  to 
consider  Latin  American  possibilities.  These 
two  cases  strikingly  serve  to  illustrate  the  im- 
portance of  being  familiar  with  Spanish,  or 
the  language  of  the  country  wherein  you  are 
expected  to  sell  goods. 

Extremely  sensitive  and  quick  to  appreciate 
a  kindness,  it  pays  to  study  the  social  usages 
among  Latin  Americans  and  to  live  in  con- 
formity therewith  when  among  them.  It  is, 
for  example,  considered  good  taste  to  walk  al- 
ways on  the  side  of  the  street  next  the  curb,  to 
take  off  your  hat  and  stand  uncovered  as  the 
funeral  of  peon  or  plutocrat  passes,  to  bow 
generally  to  those  present  as  you  enter  a  street- 
car or  cafe  and  to  salute  them  similarly  as  you 


SALESMAN  AND  CUSTOMER    249 

depart,  while  gentlemen  always  raise  their  hats 
when  they  meet.  The  observance  of  these 
frivolous  niceties  marks  the  gentleman,  the 
failure  to  do  so  the  man,  and  the  yaw^ning 
abyss  between  these  two  degrees  of  masculinity 
to  the  Latin  American  mind  cannot  be 
bridged. 

Generally  speaking  every  Latin  American 
is  named  after  some  saint  and  observes  the 
festival  of  this  canonized  individual  both  so- 
cially and  religiously.  Ascertain  what  day 
this  is  and  always  send  some  little  remem- 
brance. It  creates  an  intimacy  hard  for  us 
cold-blooded  northerners  to  understand. 
Never  forget  church  and  national  festivals. 
Both  of  these  are  dearer  to  the  impulsive  na- 
tives than  are  our  own  and  are  celebrated  more 
elaborately.  It  pays  to  keep  a  memorandum 
book  for  this  purpose,  noting  data  of  this  na- 
ture, so  as  to  be  always  in  close  personal  touch 
with  customers  and  prospective  clients.  Lit- 
tle cards  and  other  appropriate  souvenirs  from 
the  north  commemorating  these  events  are 
highly  cherished  as  well  as  deeply  appreciated 


250     SELLING  LATIN  AMERICA 

and  erect  invisible  and  effective  barricades 
about  the  sympathetic  Latin,  sufficient  to  re- 
pulse the  attacks  of  other  salesmen. 

Religion  and  political  conditions  should 
never  be  discussed.  The  Latin  American  is 
almost  always  superstitiously  religious  and  in- 
tensely political.  To  take  the  wrong  side  of  a 
theological  argument  may  land  you  in  the  hos- 
pital while  an  error  in  judgment  on  a  political 
problem  may  mean  jail.  Both  are  places  to 
be  avoided  in  these  lands.  Besides  such  argu- 
ments always  serve  to  make  one  decidedly  un- 
popular and  materially  hurt  business  pros- 
pects. 

Religious  processions  are  frequent  in  the 
streets.  They  excite  curiosity  and  are  often 
amusing  viewed  from  our  standpoint.  Do 
what  the  populace  does  as  they  pass :  kneel  or 
raise  your  hat,  otherwise  get  away  from  the 
scene  as  quickly  as  you  can.  Many  clerical 
parades  have  been  turned  to  riots  by  some  fool- 
ish foreigner  failing  to  observe  these  sugges- 
tions. 

With  but  few  exceptions,  hotels  in  Latin 


SALESMAN  AND  CUSTOMER     251 

America  are  terrible.  Toilet  and  bathing  ac- 
commodations are  poor,  the  cooking  vile  and 
the  dishes  unpalatable,  while  the  beds  are  in- 
tolerable. Vaults  in  American  cemeteries  are 
far  preferable  as  residential  quarters  in  com- 
parison with  some  rooms  I  have  slept  in  in  this 
part  of  the  world,  especially  in  the  small  towns 
and  villages  of  the  interior.  Conditions  be- 
come rapidly  worse  the  farther  away  one  gets 
from  the  larger  cities,  and  as  one  penetrates 
out  of  the  way  places  hammocks  and  your  own 
food  supplies  are  to  be  recommended.  It 
would  be  almost  impossible  to  describe  the 
primitiveness  which  exists  in  this  part  of  the 
Western  Continent  away  from  the  beaten  path. 
Travel  facilities  are  execrable.  Trains  are 
slow  and  late  and  accommodations  decidedly 
bad.  Steamers  are  small  and  stuffy  and  not 
safe.  River  boats  are  provided  with  few  if 
any  conveniences.  Going  up  the  Magdalena 
River  in  Colombia  from  Barranquilla  to 
iBogota,  a  journey  of  about  ten  days,  the  travel- 
ler formerly  had  to  provide  his  own  sleeping 
accommodations  and  this  was  wise,  and  it  al- 


2j2     SELLING  LATIN  AMERICA 

ways  showed  good  judgment  to  carry  tinned 
food  and  bottled  water. 

Appointments  are  more  often  honored  in 
the  breach  than  in  the  observance,  more  often 
forgotten  or  delayed  than  kept.  Business  for 
no  apparent  reason  is  deferred  to  '^manana" 
(to-morrow).  Time  is  not  considered  by  our 
friends  residing  in  the  vicinity  of  the  equator. 

These  and  many  more  heart-breaking  con- 
ditions will  confront  you  every  day  of  your 
trip  through  Mariana  land.  Be  a  philosopher. 
Don't  grumble.  You  came  for  business. 
These  delays  and  deprivations  are  only  inci- 
dents in  the  game ;  they  make  the  reaching  of 
the  goal  all  the  more  of  a  victory.  Grit  your 
teeth  and  forge  ahead.  If  fleas  and  mosqui- 
toes and  bedbugs  bite,  don't  revenge  yourself 
on  your  possible  customer,  by  telling  him  what 
you  think  of  his  country  and  countrymen. 
Learn  to  smile.  It  helps  more  here  than  else- 
where. 

Be  a  student  from  the  day  that  you  sail 
from  America  to  the  day  that  you  hand  in 
your  last  expense  account.     It  will  improve 


SALESMAN  AND  CUSTOMER     253 

you  mentally  and  help  your  firm  financially. 
Study  the  needs  of  the  various  countries 
through"  which  you  pass.  Observe  what  the 
people  require.  Listen  to  suggestions  from  all 
sources.  European  successes  in  these  markets 
were  greatly  advanced  by  giving  the  people 
just  what  they  wanted.  Yours  will  come  in 
the  same  manner.  Remember  that  a  vast 
majority  of  the  population  whom  you  will 
meet  are  either  Indians  or  of  Indian  origin. 
Their  tastes  are  sure  to  be  primitive,  to  in- 
cline to  gaudy  colorings  and  lack  practicabil- 
ity. Remember,  too,  that  they  are  paying  the 
bills.  If  they  want  the  things  that  offend  your 
educated,  aesthetic  eye,  forget  it  and  explain  to 
the  house  why  they  should  make  them  as  de- 
sired. It  is  always  easier  to  follow  styles  in 
vogue  for  centuries  than  to  create  new  ones 
and  foist  them  on  the  public. 

Latin  America  has  always  been  a  hotbed  for 
disease.  Be  abstemious  in  eating  and  drink- 
ing. Alcoholic  beverages  should  be  taboo,  in- 
asmuch as  they  unnecessarily  heat  the  sys- 
tem.    Water     supplies     are     inefficient    and 


254    SELLING  LATIN  AMERICA 

often  polluted.  Your  drinking  water  should 
be  boiled;  if  good  water  is  not  obtainable 
otherwise  drink  some  reliable  mineral  water. 
Remember  that  plague  comes  from  the  bite  of 
the  flea,  and  yellow  fever  and  malaria  from  the 
bite  of  the  mosquito,  so  avoid  as  much  as  possi- 
ble the  places  where  these  pests  are  to  be 
found.  Daily  baths  are  apt  to  remove  danger 
from  flea  bites  and  sleeping  under  a  net  mini- 
mizes the  possibilities  of  contracting  yellow 
and  malarial  fevers.  Personal  hygiene  should 
always  be  observed.  In  twenty  years  of  the 
roughest  and  toughest  travelling  up  creeks  and 
down  tropical  rivers,  through  forests  heavy 
with  dew,  across  barren,  wind-swept  plains, 
over  mountains,  in  high  and  low  altitudes,  by 
exercising  these  suggested  precautions  I  have 
had  only  one  serious  illness,  yellow  fever. 
Conditions  have  vastly  improved  since  I  first 
began  my  trips  and  are  getting  better  every 
year.  With  judgment  one  could  now  take  a 
journey  all  over  Latin  America  without  any 
physical  dangers  or  serious  illness  intervening, 
and  with  less  risk  than  he  would  be  liable  to 


SALESMAN  AND  CUSTOMER    255 

encounter  on  a  trip  between  New  York  and 
Chicago. 

From  a  perusal  of  the  requirements  neces- 
sary for  a  salesman  in  this  territory,  and  I  may 
add  that  I  have  not  overcolored,  or  under- 
estimated them,  it  is  apparent  that  the  right 
man  will  be  difficult  to  find.     If  a  house  can- 
not see  its  way  clear  to  enter  this  field  with  the 
right  kind  of  a  representative,  it  had  better 
remain  out  of  it  altogether  or  combine  with 
several  concerns  in  allied  lines  and  send  one 
high  grade  man  to  represent  them  jointly.     It 
is  extremely  doubtful   if  any  one  could  do 
justice  to  more  than  five  firms  in  such  a  ven- 
ture.    The  plan  adopted  by  European  houses 
is  to  send  a  capable  young  man  to  one  of  the 
countries  and  let  him  live  there  until  he  has 
acquired  the  language,  the  customs  of  the  peo- 
ple and  their  ways  of  doing  business.     Then 
they  put  him  on  the  road.     This  serves  to 
demonstrate  the  thoroughness  which  marked 
every  step  of  the  European  conquest  of  these 
markets.     Our  American  public  schools  are 
now^  instructing  pupils  in  Spanish  and  Latin 


256    SELLING  LATIN  AMERICA 

Americans  are  coming  to  this  country  to  ac- 
quire English  in  increasing  nurnbers  right 
along,  so  that  the  possibilities  are  that  within 
a  few  years  these  conditions  will  change  for 
the  better.  To-day,  however,  the  efficient, 
competent  and  reliable  salesman  for  Latin 
America  is  so  rare  and  so  much  in  demand 
that  he  can  practically  name  his  own  salary. 

Nearly  every  country  in  Latin  America  re- 
quires that  a  license  to  sell  goods  must  be  taken 
out  by  the  salesman  before  he  can  do  busi- 
ness within  its  territory,  and  as  a  result  there 
has  arisen  much  cause  for  complaint.  As  a 
rule  these  taxes  or  fees  are  entirely  too  high 
and  out  of  proportion  to  those  charged  any- 
where else  in  the  world,  thereby  creating  a 
natural  tendency  to  evade  the  law  by  every 
possible  means.  In  some  localities  runners 
about  the  hotels  stand  in  with  the  authorities 
and  for  a  small  sum  provide  guests  with  the 
necessary  paper  entitling  them  to  sell  goods, 
while  in  other  places  the  law  is  practically 
ignored. 

The  right  to  collect  this  tax  in  many  coun- 


SALESMAN  AND  CUSTOMER     257 

tries  is  sold  yearly  by  the  municipal  authori- 
ties for  a  lump  sum  to  some  individual,  who  al- 
ways endeavors  to  collect  as  much  as  he  can 
from  the  concession.  Beware  of  the  person 
who  holds  this  right.  He  has  at  his  beck  and 
call  a  score  of  petty  employes  about  the  city 
and  around  the  hotels  who  report  your  move- 
ments to  him,  and  the  result  is  generally  dis- 
astrous to  you,  especially  if  you  try  to  do  busi- 
ness without  his  permission. 

In  the  Argentine  republic  for  example  each 
province  has  a  fixed  fee  for  this  purpose  and 
the  total  sum,  if  paid,  would  eliminate  the 
profits  from  the  average  amount  of  your  sales. 
Failure  to  pay  generally  means  a  term  in  jail. 

The  merchant's  yearly  taxes  in  many  coun- 
tries includes  the  right  to  sell  goods  by  travel- 
ling salesmen  and  if  he  is  approached  properly 
by  a  non-resident  representative  will  allow 
him  to  take  advantage  of  his  business  foresight 
and  use  this  permit,  thereby  giving  a  legi- 
timate and  legal  opportunity  to  omit  paying 
these  obnoxious  charges.  By  observing  these 
suggestions  and  the  exercise  of  diplomacy  and 


258     SELLING  LATIN  AMERICA 

good  judgment,  little  need  be  feared  from  the 
authorities  in  this  connection. 

Before  entering  a  foreign  country  for  the 
first  time,  it  is  well  to  obtain  letters  of  intro- 
duction to  leading  merchants  and  especially  to 
government  officials.  They  prove  wonder- 
fully beneficial  and  are  highly  successful  in 
smoothing  out  the  rough  places  which  are  sure 
to  be  met  with  in  the  paths  of  business.  It 
generally  pays  to  act  implicitly  on  the  advice 
given  by  responsible  people  living  in  the  land 
wherein  you  are  a  pilgrim,  for  they  are  well 
acquainted  with  local  idiosyncrasies,  and  can 
suggest  the  exact  spot  where  a  small  tip  will 
facilitate  matters  materially. 

Be  sure  to  cultivate  the  acquaintance  of  the 
high  grade  old  time  traveller  whom  you  will 
be  certain  to  meet  sooner  or  later  on  your  trip. 
You  will  find  him  pregnant  with  pertinent 
and  useful  suggestions,  which  will  do  much 
toward  making  your  initial  trip  a  success. 
Years  of  experience  in  the  Latin  American 
school  of  business  have  given  him  a  marvellous 
amount  of  wisdom,  which  you  will  always  find 


SALESMAN  AND  CUSTOMER    259 

him  willing  to  dispense  if  you  are  the  right 
kind  and  not  trying  to  impress  the  world  with 
your  superior  knowledge. 

Both  as  a  matter  of  courtesy  and  as  a  good 
business  proposition  be  sure  to  call  on  the 
American  consular  officer  whom  you  will  al- 
ways find  at  the  port.  He  is  in  touch  with  the 
local  merchants,  is  generally  well  informed  as 
to  market  conditions  and  can  give  you  many 
practical  suggestions.  He  also  has  a  line  on 
the  financial  standing  of  most  dealers  through- 
out his  territory. 

Be  sure  that  your  order  blanks  are  printed 
in  triplicate  and  in  Spanish  for  all  countries 
except  Brazil  where  the  language  is  Portu- 
guese. Ample  space  should  be  provided  un- 
der the  captions  'Terms";  ''How  Packed"; 
''How  Invoiced";  "How  Shipped."  When 
possible,  I  have  always  insisted  on  the  buyer 
signing  the  order  and  filling  in  with  his  own 
handwriting  the  spaces  referred  to.  There 
can  be  no  cause  for  refusal  to  accept  the  goods, 
if  you  have  complied  with  the  written  condi- 
tions of  the  merchant.     Very  naturally  when 


26o     SELLING  LATIN  AMERICA 

the  order  has  been  signed  the  merchant  should 
have  a  copy,  another  sent  to  the  house,  while 
you  retain  the  third  one  for  your  personal  files 
and  for  future  reference. 

If  possible  always  carry  your  samples  in 
one  or  more  cases.  Clothes  should  never  be 
packed  with  them,  but  in  separate  trunks. 
Now  and  then  you  will  find  officious  and  over 
energetic  customs  officials.  Treat  them  with 
courtesy,  even  if  they  irritate  you.  Remember 
that  they  can  make  you  endless  trouble  and 
that  they  may  understand  any  caustic  remarks 
you  may  venture  to  make  in  English.  As  a 
rule,  however,  these  officials  are  very  consider- 
ate. If  you  are  selling  shoes,  it  is  wise  to  bring 
only  one  sample  of  each  pair.  If  you  carry  a 
line  of  silverware,  have  each  sample  sawed  in 
half.  This  will  at  once  remove  suspicion 
from  you  as  far  as  the  customs  are  concerned. 

If  you  are  to  travel  the  West  Indies,  Central 
America  and  the  northern  countries  of  South 
America,  including  Brazil,  Colombia,  Vene- 
zuela and  Ecuador,  light  clothes  should  be  re- 
lied upon.     Remember  too  that  in  the  high- 


SALESMAN  AND  CUSTOMER    261 

lands  and  mountainous  districts  of  these 
countries  it  is  often  cool,  especially  at  night, 
and  a  light  overcoat  is  therefore  advisable. 
In  the  highlands  of  Peru,  Bolivia  and  Chile, 
heavy  clothes  are  always  worn.  The  climate 
of  Southern  Chile,  Argentine,  Uruguay  and 
Paraguay  is  much  like  our  middle  States,  ex- 
cepting that  the  seasons  are  reversed,  their 
winter  corresponding  to  our  summer  and  vice 
versa.  A  trunk  packed  for  a  complete  trip  for 
all  of  Latin  America  should  therefore  include 
both  summer  and  winter  clothing. 

It  is  wise  to  pay  much  attention  to  the  style 
and  nature  of  your  correspondence.  Ameri- 
can business  men  for  years  have  been  concen- 
trating and  condensing  their  thoughts — saying 
in  a  few  words  the  same  thing  that  formerly 
were  expressed  in  pages.  The  Latin  Ameri- 
can has  not  yet  practiced  this  conservative 
method  of  expressing  himself  and  as  a  result 
his  correspondence  is  voluminous  and  he  in- 
dulges in  word  paintings  that  are  picturesque 
and  unique  but  not  practical.  If  you  are  not 
as  excessive  in  this  respect  as  he  is,  the  chances 


262     SELLING  LATIN  AMERICA 

are,  unless  he  knows  you  exceedingly  well,  that 
he  will  construe  your  letters  as  brusque  and  far 
from  courteous.  His  letters  will  be  filled  with 
the  sentimental  phrases  of  past  ages.  This  is 
his  idea  of  politeness  and  should  be  your  guide 
in  addressing  him.  You  cannot  be  too  verbose 
in  your  communications.  He  comes  from  a 
race  noted  for  its  grandiloquent  declamations 
and  this  typical  characteristic,  this  desire  to 
figuratively  gild  refined  gold,  add  a  perfume 
to  the  violet  and  a  whiteness  to  the  lily,  means 
much  to  him.  It  is  one  of  his  ways  of  estimat- 
ing your  educational  worth  and  of  calibrating 
your  standing  as  a  gentleman.  I  know  of  no 
better  exemplification  of  this  than  a  compari- 
son between  the  flowery  way  Latin  American 
letters  are  terminated  and  our  own.  It  is 
more  personal,  more  deferential  and  more  im- 
pressive to  sign  yourself,  ^'Your  attentive  and 
secure  servant  who  kisses  your  hand,"  than 
briefly  and  harshly,  ^'Yours  very  truly,"  yet 
the  former  method  is  the  one  in  which  prac- 
tically all  letters  close  coming  from  these 
sunny  lands. 


-         T-  3 


5       ,  J     3       5       5 


o 

c 

03 


o 


-t-> 
C 

U 

'a 
c 

> 


SALESMAN  AND  CUSTOMER     263 

Bills,  catalogues,  price-lists,  in  a  word  all 
^^literature"  should  be  in  the  language  of  the 
country  for  obvious  reasons  and  in  having 
these  translated  be  sure  to  employ  only  experi- 
enced and  able  translators.  Nothing  paves 
the  W2ij  for  so  much  ridicule  as  poorly  ex- 
pressed and  badly  produced  business  docu- 
ments, for  the  keen  eye  of  the  Latin  notes 
errors  v^ith  great  precision.  Efficiently  pro- 
duced and  artistically  printed  materials  of  this 
nature  impress  one  in  these  lands  and  help 
materially  in  giving  you  and  your  firm  a  high 
standing  in  the  minds  of  the  native  merchants, 
while  poorly  got  up  pamphlets  and  the  like 
open  his  flood  gates  of  criticism  and  prejudice 
both  against  you  and  your  goods.  All  weights 
and  measurements  should  be  in  the  metric  sys- 
tem. 

Be  sure  always  to  bear  in  mind  that  first- 
class  mail  to  Latin  America,  excepting  Pan- 
ama, Mexico,  Cuba  and  Porto  Rico,  cost  five 
cents  an  ounce  or  fraction  thereof  and  three 
cents  for  each  additional  ounce  or  fraction 
thereof;  all  printed  matter,  one  cent  for  each 


264    SELLING  LATIN  AMERICA 

two  ounces  or  fraction  thereof.  Be  careful 
therefore  to  put  full  postage  on  all  correspond- 
ence, otherwise  your  mail  will  be  delayed  and 
its  recipient  subjected  to  a  series  of  fines  for 
your  sin  in  short  postage  which  will  have  the 
effect  of  hurting  your  cause.  Mistakes  of  this 
kind  are  unwarranted  and  you  should  caution 
the  house  and  the  one  in  charge  of  the  mail  to 
put  proper  postage  on  letters.  Latin  Ameri- 
can  merchants  always  look  upon  letters  short- 
posted  as  a  shrewd  Yankee  plan  to  make  them 
pay  part  of  the  expenses  of  your  establishment. 
From  their  point  of  view  this  is  not  far  from 
right  either,  for  they  are  never  guilty  of  this 
fault  so  very  prevalent  among  Americans. 

If  you  have  no  fixed  address  instruct  your 
correspondents  to  send  all  mail  in  care  of  the 
consul  of  the  United  States  of  America,  at  each 
port  where  you  intend  stopping.  Remember 
that  consuls  are  to  be  found  only  at  seaports. 
To  address  a  letter  Care  of  the  Consul  for  the 
United  States  of  America,  Bogota,  Colombia, 
would  practically  mean  that  you  would  never 
get  the  letter,  for  the  reasons  that  these  officials 


SALESMAN  AND  CUSTOMER    265 

are  found  for  example  in  Colombia,  at  Barran- 
quilla,  Savanilla,  Santa  Marta,  and  along  the 
seaboard.  It  is  unwise  to  send  mail  in  care  of 
the  General  Delivery.  Later  on  after  you 
have  been  over  the  territory  and  established 
friendly  relations  with  some  dealer  or  mer- 
chant, mail  may  be  sent  in  his  care. 

Passports  are  unnecessary  in  Latin  America. 

Funds  should  be  carried  in  the  form  of  Let- 
ters of  Credit.  It  is  wise  to  take  one  of  these 
in  Dollars  and  Cents  and  the  other  in  Pounds 
Sterling,  as  there  will  be  many  opportunities 
to  use  one  of  these  advantageously  in  selling 
exchange  w^hen  the  other  cannot  be  so  em- 
ployed. This  all  depends  of  course  on  the 
local  demands  for  foreign  exchange,  and  be- 
fore buying  money,  it  is  wise  to  ascertain 
which  letter  of  credit  can  be  used  more  profit- 
ably. The  saving  which  can  be  made  in  the 
course  of  a  long  trip  in  closely  watching  the 
price  of  money  and  buying  when  conditions 
favor  you,  is  worthy  of  your  best  attention. 


CHAPTER  XXIII 

CUSTOM-HOUSES  AND  TARIFFS 

No  one  can  fully  appreciate  what  difBcul- 
ties  custom-houses  and  tariffs  can  cause  until 
he  has  had  experience  with  those  in  Latin 
America.  The  custom-house  officials  deem 
it  their  duty  to  harass,  embarrass,  annoy  and 
add  to  the  troubles,  worries  and  expenses 
of  the  merchant  in  these  lands.  They  are 
veritable  boulders  in  the  path  of  business 
progress.  The  charges,  fees,  tariffs,  taxes,  and 
the  hundred  and  one  incidental  and  unwar- 
ranted expenses  which  exist  in  no  other  cus- 
tom-houses in  the  world  save  in  those  of  Latin 
America,  change  from  day  to  day  and  are  sus- 
ceptible to  as  many  interpretations  as  there  are 
government  employees  having  any  work  to  do 
with  the  goods  under  consideration.  It  would 
be  the  height  of  folly  to  attempt  to  give  tariffs 
and  other  custom-house  charges  in  any  Latin 

266  ' 


CUSTOM-HOUSES  267 

American  country  to-day,  for  by  to-morrow 
fully  half  of  them  would  be  changed,  and  let 
me  add  that  the  alteration  is  always  in  the 
form  of  an  additional  charge  and  never  a  re- 
duction. Tariffs  are  extreme  and  exorbitant, 
subject  to  the  whims  and  financial  needs  of 
those  in  power  and  liable  to  complete  varia- 
tion without  warning.  Customs  officials  are 
recruited  always  from  the  class  of  ''politicos" 
hereinbefore  discussed.  The  positions  which 
they  fill  are  the  political  plums  of  the  land. 
These  men  have  not  the  interest  of  their  coun- 
try, their  countrymen  or  the  merchants  within 
their  borders  at  heart.  Their  desire  is  to  ac- 
quire wealth  by  exploiting  those  with  whom 
their  official  duties  bring  them  in  contact,  and 
they  have  reduced  this  to  a  perfect  science. 
The  doings  of  Tammany  are  in  the  kinder- 
garten class  as  compared  with  these  exponents 
of  the  theory  that  to  the  victor  belongs  the 
spoils.  The  schemes  designed  and  resorted  to 
by  these  modern  inquisitors  are  almost  beyond 
belief,  and  could  only  emanate  from  the  brains 
of  those  whose  ancestors  received  their  school- 


268     SELLING  LATIN  AMERICA 

ing  in  the  days  when  the  ^^auto  da  fe''  was  com- 
mon and  Torquemada  reigned  supreme.  Let 
me  illustrate  by  a  few  custom-house  rulings 
taken  at  random  from  different  Latin  Ameri- 
can ports. 

'  In  a  certain  Central  American  country, 
clinical  thermometers  are  admitted  duty  free, 
according  to  the  government  tariff  schedule. 
Laboring  under  this  belief  a  local  druggist 
ordered  one  hundred.  Imagine  his  surprise 
when  the  customs  collector  charged  him  the 
duty  assessed  on  cut  glass  decanters,  classing 
the  thermometers  as  ^'etched  glass  containers." 
Their  contents — mercury — was  classed  as  an 
explosive  at  a  prohibitive  rate  and  for  ^'trying 
to  evade  the  customs"  a  fine  of  $500.00  was 
added,  or  instead  of  getting  the  goods  in,  with- 
out charges,  the  importer  was  obliged  to  pay 
$642.50  or  go  to  jail. 

In  a  shipment  of  pickles,  because  the  in- 
voice failed  to  state  whether  they  were  put  up 
in  vinegar  or  mustard,  a  fine  of  $100.00  was 
collected. 

On  a  box  of  candy  weighing  five  pounds. 


CUSTOM-HOUSES  269 

sent  as  a  present,  the  nature  of  the  ingredients 
of  each  separate  piece  of  candy  was  not  in- 
dicated, and  a  fine  of  $80.00  imposed  and  ob- 
tained. 

The  bar  of  a  famous  ex-prize-fighter  has 
been  for  years  in  a  Latin  American  custom 
house  because  the  importer  never  could  raise 
the  money  to  pay  the  arbitrary  fine  exacted. 
Brass  pays  a  high  duty  according  to  the 
schedule  of  the  country  to  which  this  bar  was 
shipped,  because  cartridges  can  be  made  from 
it,  although  there  is  not  an  ammunition  factory 
in  the  entire  land.  In  the  decorations  of  the 
wooden  pillars  at  the  end  of  the  bar,  there 
were  one  or  two  strips  of  brass  about  two 
inches  wide.  The  whole  bar  was  assessed  as 
of  this  metal  and  a  duty  and  fine  amounting  to 
several  thousand  dollars  imposed,  which 
caused  the  American  who  bought  it  and  who 
had  intended  to  open  a  cafe  in  one  of  its  cities, 
to  get  out  of  the  place  on  the  first  ship,  leaving 
the  bar  as  a  souvenir. 

An  iron  bed,  with  four  hollow  brass  balls  as 
ornaments  on  the  end  posts  met  with  the  same 


270     SELLING  LATIN  AMERICA 

treatment  in  the  same  custom-house,  paying  a 
duty  of  $200.00. 

Theatrical  appliances  are  free  everywhere, 
especially  if  the  property  of  a  traveling 
troupe.  Despite  this  fact  and  a  positive  state- 
ment to  this  effect  in  the  tariff  regulations,  I 
knew  one  large  Latin  American  country, 
wherein  a  carousel,  or  ^'flying-horse"  outfit, 
was  refused  admission  unless  the  owner  paid 
the  duty  charged  on  live  stock,  each  wooden 
horse  being  assessed  at  the  rate  of  $25.00, 
which  is  the  tariff  on  breeding  stallions. 

Thefts  by  minor  employees  of  the  custom- 
house are  only  too  common.  As  a  rule  these 
men  are  poorly  paid  and  add  to  their  scanty 
income  by  appropriating  whatever  comes 
within  their  reach.  I  have  known  of  cases  of 
soap,  provisions,  perfumes,  shoes  and  the  like 
to  be  entirely  confiscated  in  this  manner. 
There  is  absolutely  no  redress.  Very  often  the 
higher  employees  are  implicated  in  these 
nefarious  practices.  In  one  of  the  largest  and 
most  progressive  of  Latin  American  cities,  all 
the  foreign  and  native  merchants  had  been  re- 


CUSTOM-HOUSES  271 

ceiving  cases  short  of  their  invoiced  contents. 
Complaints  to  the  authorities  did  not  remedy 
matters.     Finally  the  thieves  became  bolder 
and  the  thefts  more  extensive,  many  merchants 
being  offered  their  own  goods  for  sale  at  prices 
less  than  they  originally  cost  abroad.     Con- 
certed   diplomatic   pressure  was    brought   to 
bear,  and  an  investigation  promised.     The  day 
before  the  official  hearing,  the  entire  block  of 
custom  houses  involved  was  burnt,  a  strange 
coincidence  being  that  the  four  car  tracks  in 
front    thereof,    were    occupied    v/ith    loaded 
freight  cars  so  that  the  fire  engines  could  not 
get  near  enough  to  stop  the  conflagration.     All 
records  were  thus  destroyed  and  nothing  could 
be  done,  the  loss,  involving  millions  of  dollars, 
falling  as  usual  on  the  foreign  merchant. 

Pages  could  be  filled  with  similar  data. 
All  of  our  consular  offices  are  cognizant  of 
these  outrages,  yet  nothing  definite  has  been 
attempted  to  stop  them.  No  matter  what  pre- 
cautions the  exporter  takes,  or  how  closely  he 
follows  the  shipping  instructions,  his  customer 
can  always  be  victimized  by  these  scheming 


272     SELLING  LATIN  AMERICA 

officials.  European  nations  suffer  equally 
with  us  and  it  would  seem  that  the  time  is  ripe 
for  some  united  action  on  the  part  of  the  great 
exporting  countries  to  remedy  this  growling 
evil,  for  that  it  hurts  trade  cannot  be  de- 
nied. 

Not  only  are  there  unwarranted  and  exces- 
sive duties  charged  on  imports  but  on  exports 
as  well,  and  on  these  exports  we  as  the  largest 
user  of  the  things  produced  in  Latin  America 
pay  the  bill.  These  conditions  should  be  at- 
tended to  at  once,  and  it  should  be  the  business 
of  our  State  Department  to  adjust  them  prop- 
erly. 

On  hides,  coffee,  rubber  and  sugar,  which 
are  the  leading  exports  from  these  countries, 
the  United  States  charges  no  duty,  or  a  merely 
nominal  one.  The  remarkable  feature  of  this 
trade  is  that  every  Latin  American  country  im- 
poses on  all  of  these  articles  heavy  export 
charges,  which  according  to  their  own  laws  are 
unconstitutional,  and  we  pay  the  bills,  at  the 
same  time  allowing  them  to  impose  exorbi- 
tant duties,  outrageous  port  charges,  and  il- 


CUSTOM-HOUSES  273 

legitimate  fines  on  our  exports  to  them.  It 
may  be  argued  that  in  the  end  the  cost  is  finally 
borne  by  them,  but  the  fact  nevertheless  re- 
mains that  there  is  much  work  here  to  be  done 
by  our  government  to  overcome  these  condi- 
tions for  the  benefit  of  all  parties  involved.  It 
is  decidedly  unfair  for  a  country  to  collect 
revenues  both  ways,  namely,  on  its  exports  to 
us  and  on  our  exports  to  it. 

The  importer  is  the  one  who  bears  the  brunt 
of  these  burdens.     He  is  continually  paying 
bribes  or  fines  which  are  of  course  added  to 
the  cost  of  the  goods.     Failure  on  his  part  to 
"come  across"  means   delays,   loss  of  goods, 
higher  port  charges  and  incalculable  annoy- 
ances.    One  of  the  great  objections  to  this  sys- 
tem of  robbery  aside  from  its  basic  principle 
of  error  is  that  one  shipment  does  not  serve  as 
a  means  for  calculating  a  price  on  the  next 
one.     A  new  custom-house  official  (and  cus- 
tom-house officials  are  changed  in  these  lands 
as  often  as  a  chameleon  changes  color)  may 
have  come  into  office  between  shipments  re- 
quiring a  higher  standard  of  fines  and  bribes 


274    SELLING  LATIN  AMERICA 

to  placate.  This  obviously  hurts  the  sale  of 
any  article  and  makes  the  merchant  hesitate 
to  renew  orders.  Both  importers  and  export- 
ers have  preferred  to  be  harassed,  fearing  that 
their  failure  to  comply  v^ith  these  unwar- 
ranted and  illegal  demands  would  result  in 
the  exclusion  of  their  goods  from  the  country, 
a  condition  which  has  often  been  imposed. 
Concerted  action  on  the  part  of  all  nations  to 
stop  this  blackmail  would  meet  with  the  sup- 
port of  the  merchants  and  importers  of  these 
lands,  and  the  sooner  some  step  in  this  direc- 
tion is  taken  the  better. 

Under  the  condition  of  affairs  now  exist- 
ing, and  the  long-continued  attitude  of  our 
government  toward  all  of  Latin  America,  it 
seems  as  if  there  is  no  hope  for  our  people  or 
merchants  and  that  we  must  submit  uncom- 
plainingly to  these  iniquities.  There  can  be 
no  doubt  but  that  the  existence  of  such  a  state 
of  affairs  has  done  much  to  retard  the  healthy 
growth  of  trade  relations  between  all  of  these 
countries  and  the  rest  of  the  world.  Latin- 
American  merchants  are  absolutely  powerless 


CUSTOM-HOUSES  275 

to  remedy  the  situation  by  themselves.  At- 
tempts to  improve  must  come  from  the  outside 
and  be  presented  through  diplomatic  channels 
and  most  emphatically  insisted  upon.  A  de- 
termined effort  on  the  part  of  this  government 
would  do  much  to  bring  about  a  change  and 
would  be  a  most  potent  factor  in  extending  our 
trade  relations  in  these  lands. 

It  may  be  argued  that  despite  the  system  of 
fines,  bribes  and  graft  which  are  so  intimately 
associated  with  the  Latin  American  custom- 
houses the  lands  are  prosperous  and  their 
merchants  thriving,  but  the  fact  cannot  be  dis- 
puted that  the  practice  is  decidedly  wrong  and 
reflects  materially  on  the  integrity  and  dignity 
of  the  nation  permitting  it  and  positively 
hampers  the  legitimate  growth  of  trade. 


XXIV 

TRADE  MARKS 

The  registration  of  your  trade  mark  should 
be  attended  to  as  soon  as  possible  if  it  is  your 
intention  to  enter  the  Latin  American  field 
with  the  article  which  you  manufacture.  In 
many  of  these  countries  the  laxity  of  the  laws 
governing  this  important  commercial  protec- 
tion work  great  hardship  on  legitimately  es- 
tablished enterprises.  I  regret  to  state  that 
in  nearly  every  one  of  these  lands,  it  is  legally 
permissible  for  anyone  to  register  any  trade 
mark  on  fulfilling  certain  simple  conditions 
and  the  payment  of  a  small  fee.  The  result  is 
that  a  class  of  men  without  scruples  are  con- 
tinually on  the  lookout  for  articles  which  are 
being  well  advertised  in  this  country,  knowing 
the  probabilities  are  that  sooner  or  later 
there  will  be  a  demand  for  them  throughout 

the  world  and  especially  in  the  place  wherein 

276 


TRADE  MARKS  277 

they  reside.  Magazines  and  periodicals  of  all 
classes  are  watched  with  care  and  as  soon  as 
extensive  publicity  campaigns  are  launched  in 
the  United  States  or  Europe,  the  chances  are 
that  the  trade  name  of  the  article  being  ex- 
ploited will  be  simultaneously  registered  by  a 
native  in  many  Latin  American  Patent  Offices. 
The  next  step  in  the  technique  of  these  rogues 
is  to  wait  until  some  shipment  of  the  goods  in 
question  arrives,  a  fact  easily  ascertained  by 
noting  the  shipping  news  from  the  States  and 
reading  the  invoices  and  the  names  of  consign- 
ees, data  which  is  eagerly  sought  after  and 
published  with  great  detail  by  all  the  papers 
of  the  port.  An  injunction  is  then  immedi- 
ately obtained  and  the  entire  shipment  is 
either  prohibited  from  landing  or  held  in  the 
custom  house  pending  wearying  and  tiresome 
legal  complications,  with  the  result  that  the 
quasi  owner  of  the  trade-mark  in  question  is 
always  victorious  and  the  shipment  either  ex- 
cluded from  the  country  in  toto  or  awarded  to 
the  unlawful  owner  of  the  brand,  in  lieu  of 
court  costs  and  legal  fees.     In  the  latter  event 


278     SELLING  LATIN  AMERICA 

they  are  then  sold,  and  the  money  derived 
therefrom  goes  of  course  to  the  pirates  who 
had  the  foresight  to  register  the  name.  These 
men  often  wait  for  years  before  accomplishing 
their  purpose  and  with  the  idea  of  ultimately 
making  money  from  their  venture  have  been 
known  to  renew  repeatedly  the  trade-mark, 
when  it  expired  owing  to  legal  limitations. 

Of  course  on  attaching  a  shipment  of  goods 
bearing  one  of  these  stoleo  and  registered 
trade-marks,  the  native  owner  always  offers 
to  sell  out  his  interest  in  the  same,  invariably 
asking  a  price  absurdly  excessive,  particularly 
so  when  one  stops  to  consider  that  he  is  asked 
to  pay  a  sum  for  the  right  to  use  his  own 
name.  Knowing  that  he  holds  the  whip  hand 
in  the  controversy,  and  that  you  must  meet  his 
terms  and  conditions,  if  you  wish  to  do  busi- 
ness in  the  country,  and  further  that  he  has 
you  at  a  decided  disadvantage  in  many  ways, 
the  situation  which  develops  is  trying  in  the 
extreme.  Then  follows  a  period  of  confer- 
ences, time-wasting  interviews  during  which 
much  patience  must  be  exhibited  until  ulti- 


TRADE  MARKS  279 

mately  practically  the  original  sum  of  money 
asked  must  be  paid.  This  has  been  the  gen- 
eral experience  of  almost  every  one  who  has 
been  so  unfortunate  as  to  be  confronted  by  such 
a  situation. 

Good  business  judgment  therefore  dictates 
that  when  you  register  your  trade-mark  in  the 
United  States,  you  should  also  protect  your- 
self by  registering  it  in  the  principal  countries 
of  Latin  America.  The  easiest  way  to  do  this 
is  through  your  patent  attorney  or  legal  ad- 
viser. If  however  you  have  failed  to  take  this 
precaution,  the  first  duty  of  your  representa- 
tive on  arriving  in  each  of  the  countries  in 
question  should  be  the  registration  of  your 
trade  name  in  the  proper  department  of  the 
government. 

In  order  to  give  this  his  personal  attention 
he  should  have  a  power  of  attorney  authoriz- 
ing him  to  act  in  this  capacity.  This  paper 
may  be  prepared  by  your  attorney,  and  should 
be  in  Spanish  for  all  countries  excepting 
Brazil,  where  the  language  is  Portuguese. 
This  document  should  be  signed  with  the  firm 


28o     SELLING  LATIN  AMERICA 

name  by  the  individual  having  the  right  to  do 
so   and   in   the   case  of  corporations  by   the 
proper  officer,  and  the  corporate  seal  attached. 
The  signature  should  then  be  sworn  to  before 
a  notary  public,  whose  name  and  seal  should 
be  certified  to  by  the  Secretary  of  State  for  the 
State  wherein  the  firm  or  corporation  does 
business  or  is  chartered.     The  notarial  oath 
and  the  certificate  of  the  Secretary  of  State 
may  be   in    English,     These   papers   should 
then  be  sent  to  the  Secretary  of  State  of  the 
United  States  at  Washington,  D.  C,  who  will 
in  turn  certify  to  the  fact  that  the  signature  of 
the  Secretary  of  State  for  the  State  in  question 
is  correct  and  they  should  then  be  forwarded 
to  the  Ambassador  or  Minister  or  proper  rep- 
resentative of  the  Latin  American  country, 
wherein  it  is  desired  to  register  the  power  of 
attorney,  who  will  in  turn  certify  to  the  signa- 
ture of  the  Secretary  of  State  of  the  United 
States.     Armed  with  this  much  verified  and 
sealed  document,  your  representative  is  then 
in  a  position  to  sign  your  name  to  the  applica- 
tion for  the  trade  mark  on  his  arrival,  and  to 


TRADE  MARKS  281 

conduct  any  further  business  before  the  local 
government  arising  therefrom.  A  separate 
legal  document  of  this  nature  is  required  for 
each  country  in  which  you  propose  to  protect 
your  trade  name. 

In  case  your  mark  is  not  registered  prior  to 
the  departure  of  your  representative  for  Latin 
America,  it  is  wise  to  pursue  the  course  above 
outlined  and  have  him  take  the  matter  up  per- 
sonally. It  often  happens  that  by  the  exercise 
of  judgment  and  through  acquaintances  which 
will  be  made,  or  the  prestige  of  the  local  at- 
torney whom  your  agent  will  retain,  many  ob- 
jections which  might  seem  unsurmountable 
can  be  easily  overcome  by  the  man  on  the 
ground.  Oftentimes  too,  the  mark  can  be  al- 
tered in  word  or  design,  so  as  to  evade  one  al- 
ready registered  without  in  any  manner  affect- 
ing your  rights. 

When  one  stops  to  consider  that  much  over 
80  per  cent,  of  the  population  of  these  coun- 
tries are  unable  to  either  read  or  write,  and 
that  they  are  therefore  forced  to  recognize  an 
article  by  some  distinguishing  sign  or  char- 


282     SELLING  LATIN  AMERICA 

acter,  the  great  value  of  an  easily  discernible, 
prominent  and  effective  trade-mark  becomes 
obvious.  As  a  matter  of  fact  the  Indians  who 
make  up  the  greater  portion  of  the  purchasing 
public  of  these  countries  know  goods  only  by 
brands  and  ask  the  storekeeper  for  them  by 
their  distinguishing  names. 

Another  feature  to  be  most  seriously  con- 
sidered in  selecting  a  name  for  your  article  in 
Latin  America  is  that  the  Spanish  alphabet 
contains  no  ^'W."  This  letter  is  formed,  when 
it  is  necessary  to  use  a  word  employing  it,  by 
combining  two  V's, — thus  VV.  Even  to  the 
educated  native  this  letter  is  unpronounceable. 
It  is  therefore  quite  obvious  that  no  word  con- 
taining it  should  ever  be  used  for  distinguish- 
ing any  brand.  Such  a  trade  mark,  for  in- 
stance, as  ''White  Wings"  instead  of  attracting 
custom,  would  act  otherwise,  owing  to  the  ex- 
treme sensitiveness  of  the  native  in  fearing 
criticism  in  pronouncing  the  words.   • 

Once  your  trade  mark  is  established,  no  mat- 
ter how  crude  it  may  be,  never  change  it,  I 
know  of  a  firm  in  Baltimore  who  formerly 


TRADE  MARKS  283 

did  an  enormous  business  in  lard  with  Brazil. 
The  cans  which  they  used  for  export  purposes 
were  a  gaudy  blue  color  and  decorated  with  a 
pig  of  elephantine  proportions.  For  eco- 
nomic reasons  they  decided  to  use  plain  tin 
cans,  stamping  the  porker  in  relief  thereon, 
but  preserving  his  pachyderm  proportions. 
The  result  was  a  package  equally  as  good,  as 
far  as  shipping  purposes  were  concerned,  with 
a  saving  of  about  two  cents  on  each  one.  As 
a  consequence  of  the  alteration  the  merchant 
was  absolutely  unable  to  sell  the  goods  shipped 
in  the  new  container,  and  when  later  on  the 
manufacturers  tried  to  regain  the  field 
which  they  lost,  by  sending  their  former  tins, 
the  natives  were  sure  that  they  were  being  de- 
ceived and  refused  to  buy  these  goods  also. 
Competitors  who  had  eagerly  sought  this 
market  took  advantage  of  the  situation  and  the 
Maryland  house  w^as  completely  shut  out  of 
the  territory  and  absolutely  lost  their  business. 
Another  illustration  may  serve  to  impress 
the  importance  of  maintaining  your  trade 
mark  in  its  entire  originality.     The  Chinese 


284    SELLING  LATIN  AMERICA 

are  great  consumers  of  canned  salmon,  and  our 
Western  fisheries  supply  much  of  the  article. 
One  firm  in  San  Francisco  had  a  brand  well 
liked  and  very  famous  among  the  Celestials. 
The  label  on  the  tin  showed  a  highly  colored 
salmon  having  the  wrong  number  of  fins,  with 
tail  elevated  in  the  act  of  leaping  over  a  water- 
fall down  stream,  while  the  background  was 
filled  with  tropical  palms  and  cocoanut  trees. 
The  trade  mark  was  simplicity  itself,  and  was 
recognized  with  favor  all  over  the  Flowery 
Kingdom.  Higher  education  however  com- 
pletely removed  the  brand  from  the  map. 
The  head  of  the  house  had  a  son  just  from 
college,  who  had  been  recently  admitted  to 
the  firm.  He  started  to  clean  up  things — to 
be  100  per  cent,  efficient.  His  aesthetic  and 
educated  eye  at  once  saw  that  the  label  on  the 
brand  which  had  made  the  firm's  fortune  was 
a  living  lie.  Salmon  were  not  colored  like 
the  rainbow;  leaped  up  stream  only;  had  less 
fins  and  depressed  their  tails  when  doing  acro- 
batic feats.  And  horror  of  horrors — no 
tropical  palms  or  cocoanut  trees  grew  in  the 


TRADE  MARKS  285 

vicinity  of  the  salmon's  habitat.  So  the  label 
was  reconstructed  and  made  a  work  of  art, 
scientifically  and  piscatorially  correct,  and  not 
a  mere  illegitimate  combination  of  wrong  de- 
tails. Then  goods  with  the  new  and  authentic 
label  were  shipped.  When  they  got  to  China 
no  Chinaman  could  be  induced  to  buy  them. 
They  became  dubious  at  once  of  the  changed 
label.  Living  in  a  land  of  suspicion  they 
knew  intuitively  that  some  designing  schemer 
was  falsifying  their  favorite  trade  mark. 
"No  samee  chop"  was  the  laconic  reply  when 
told  that  these  were  the  old  and  well  known 
goods  in  a  new  dress.  Argument  was  useless. 
The  brand  was  completely  lost  to  the  market. 
I  know  one  merchant  in  Hong-Kong  who  was 
forced  to  throw  two  car-loads  of  this  salmon 
into  the  sea,  because  space  in  his  ''go-down" 
or  warehouse  was  worth  more  than  that  oc- 
cupied by  unsaleable  stock. 

Should  you  for  some  reason  contemplate  al- 
tering your  trade  mark  or  the  color  or  shape  or 
size  of  your  container,  always  take  the  wise 
precaution  of  consulting  the  merchant  hand- 


286     SELLING  LATIN  AMERICA 

ling  your  goods  abroad  and  if  possible  adopt 
or  be  guided  by  his  suggestions.  He  is  on  the 
firing  line  and  has  his  finger  on  the  pulse  of  the 
buyers,  therefore  his  opinion  is  worthy  of  the 
most  serious  attention. 

As  typical  of  the  high-handed  hold  ups  of 
the  local  Dick  Turpins,  who  have  registered 
trade  marks  under  their  own  names  in  Latin 
America  let  me  state  that  I  know  of  two 
American  patent  medicine  men  whose  prod- 
ucts have  been  extensively  advertised  and  are 
almost  household  words  in  the  United  States, 
paying  $28,000  and  $25,000  respectively  for 
the  privelege  of  using  their  own  names  in  one 
country  of  South  America.  Both  of  these 
concerns  had  been  doing  business  in  the  United 
States  for  forty  years  and  they  afterwards  as- 
certained that  the  gentlem.en  (?)  who  had 
registered  their  names  had  been  waiting  pa- 
tiently for  their  coming  all  the  time.  A  well 
known  mineral  water,  within  the  past  two 
years,  paid  according  to  my  positive  knowl- 
edge $2500  for  their  trade-mark  and  consid- 
ered   that    they    got   off    remarkably    cheap. 


TRADE  MARKS  287 

The  price  originally  asked  was  $20,000  and 
their  representative  spent  three  months  on  the 
ground  using  every  possible  means  to  reduce 
the  figures  of  the  original  demand.  In  the 
meantime  nearly  500  cases  of  the  water  in 
question  were  held  up  by  the  authorities,  who 
refused  to  allow  them  to  be  landed  until  they 
had  the  writen  consent  of  the  native  holding 
the  registration  papers.  A  prominent  type- 
writer company  flatly  refused  to  pay  the  exces- 
sively high  sum  demanded  by  the  party  hold- 
ing the  right  to  use  their  trade  mark,  reversed 
its  name,  and  now  sells  its  machine  by  this  un- 
pronounceable designation.  Pages  could  be 
filled  with  similar  illustrations,  showing  the 
great  importance  of  properly  protecting  your 
trade  mark  at  the  start. 


XXV 

FINANCE  AND  CREDITS 

The  science  of  foreign  banking  is  the  most 
difficult  to  understand  of  all  the  departments 
of  modern  finance.  It  requires  the  experience 
of  experts  whose  knowledge  must  be  the  most 
profound  and  complete  and  includes  such  de- 
tails as  the  conditions  of  the  w^orld's  markets, 
the  existing  crops,  factory  productions,  local 
and  extraneous  political  affairs,  as  well  as  ex- 
ternal and  internal  commerce. 

European  financiers  and  merchants  soon 
recognized  the  importance  of  reciprocal  bank- 
ing arrangements  between  the  home  countries 
and  foreign  fields  and  as  early  as  1862,  antici- 
pating the  growth  of  Latin  America  and 
sensing  the  financial  necessities  of  its  future 
merchants,  opened  the  London  and  River  Plate 
Bank,  which  with  its  ramifications  of  branches 
and  agencies  in  Argentine,  Brazil,  Chile,  New 

York,   and  various   European   countries   has 

288 


>      1         3      :>       5       3 


Calle  Rivadavia,  Buenos  Aires 


FINANCE  AND  CREDITS      289 

been  a  potent  factor  in  developing  and  con- 
trolling business  along  British  channels.  Fol- 
lowing the  pioneer  move  of  this  corporation, 
other  institutions  were  organized  in  England, 
until  to-day  the  amount  of  British  capital  in- 
vested in  banks  in  all  of  Latin  America  is  close 
to  $500,000,000. 

Realizing  the  benefits  to  be  derived  from 
such  monetary  connections  in  these  countries 
and  knowing  that  a  bank's  co-operation  meant 
much  to  both  the  buyer  and  seller  and  formed 
perhaps  the  strongest  link  in  the  chain  of  for- 
eign commerce  with  which  they  hoped  to 
girdle  the  world,  Germany  followed  in  the 
footsteps  of  England  and  opened  a  similar 
series  of  institutions  in  the  same  territories, 
even  going  so  far  as  to  have  branches  in  Eng- 
land, knowing  the  decided  preference  for 
^^bills  on  London."  Through  their  offices  in 
the  English  capital,  they  succeeded  in  keeping 
as  much  as  possible  of  the  business  they  ac- 
quired abroad  in  their  own  hands,  reaping  all 
possible  profit  from  every  transaction.  In 
their   turn,    and   as   their   foreign    trade   de- 


290     SELLING  LATIN  AMERICA 

manded  it,  France,  Italy,  Spain  and  Switzer- 
land entered  the  field  but  on  a  much  smaller 
financial  basis,  at  the  same  time  restricting 
their  activities  so  as  to  confine  them  more  to 
the  home  countries  and  to  persons  of  their 
own  nationalities  engaged  in  this  field  of  com- 
merce. 

Only  recently  have  statutory  and  business 
conditions  warranted  the  advance  of  the 
American  banker  into  this  sphere  of  finance. 
To-day  in  Latin  America  our  banking  institu- 
tions may  be  found  in  the  Argentine,  Brazil, 
Panama,  Cuba,  Santo  Domingo,  Porto  Rico, 
Mexico  and  to  a  small  extent  in  Haiti.  As  it 
becomes  apparent  that  our  merchants  and  those 
of  other  countries  require  financial  organiza- 
tions to  further  and  facilitate  trade  with  the 
United  States,  additional  establishments  will 
be  opened  in  these  lands  until  ultimately  the 
dollar  will  be  so  enthroned  in  the  estimation 
of  the  business  world  that  it  need  pay  no  hom- 
age to  the  Pound  Sterling,  which  up  to  the 
present  has  been  Emperor  Supreme  in  the 
Realm  of  Finance. 


FINANCE  AND  CREDITS      291 

That  this  movement  is  judicious  no  one 
familiar  with  this  trade  will  for  a  moment 
dispute.  The  ability  of  the  British  banks, 
through  their  strong  financial  arteries,  gave 
them  exceptional  opportunities  to  force  busi- 
ness into  the  hands  of  English  merchants,  by 
obliging  the  seller  of  exchange,  for  example, 
in  Buenos  Aires  on  New  York  to  pay  from  i 
per  cent,  to  1.5  per  cent,  more  than  if  he  sold 
on  London,  or  if  he  desired  to  buy,  to  pay  a 
correspondingly  higher  price  for  a  draft  on 
New  York  than  on  London.  In  addition  to 
exerting  thus  their  powers  through  a  high  rate 
of  exchange  to  drive  merchants  into  British 
markets,  the  profits  in  the  transfer  of  money 
incident  to  the  transaction  were  enormous. 
The  truth  of  this  statement  is  vividly  apparent 
when  we  are  told  that  in  1912,  ''bills  on  Lon- 
don" valued  at  $9,025,000,000  were  sold,  on 
every  penny  of  which  a  fraction  of  a  per  cent. 
of  profit  was  made  by  English  bankers. 

It  is  not  deemed  necessary  for  the  purpose 
of  this  work  to  go  into  the  intricacies  of  the 
banking  problem  in  Latin  America.     Such  in- 


292     SELLING  LATIN  AMERICA 

cidents  as  local  loans,  credits  and  financing, 
need  not  concern  us,  and  are  best  left  for  solu- 
tion to  those  in  this  line  of  business.  It  is  to 
be  hoped  however  that  the  presence  of  Ameri- 
can banking  institutions  throughout  Latin 
America  will  result  in  the  financing  with 
American  money  of  municipal  and  national 
improvements  such  as  water-works,  sanitation, 
electric  and  gas  companies,  subways,  harbor 
improvements,  fortifications,  building  of  war- 
ships, telephones,  electric  and  steam  railways. 
It  was  the  custom  of  the  European  financier  in 
making  such  loans  to  stipulate  that  the  work 
should  be  done  under  the  supervision  of  citi- 
zens of,  and  with  articles  and  machinery  pur- 
chased in,  the  country  placing  the  loan.  This 
was  as  it  should  be.  It  gave  their  engineers 
and  contractors  an  opportunity  to  force  upon 
these  countries  their  products  and  methods, 
provided  permanent  employment  for  many  of 
their  countrymen,  who  in  return  created  a  de- 
mand for  articles  of  home  production. 

We  may  therefore  consider  the  banking  sit- 
uation only  in  so  far  as  it  applies  to  the  travel- 


FINANCE  AND  CREDITS      293 

ler,  the  house  he  represents  and  the  customer 
he  sells  in  the  accommodation  it  can  afford 
them  and  the  service  it  may  render  all  parties. 
One  of  its  chief  uses  will  be  to  give  reliable  in- 
formation as  to  the  credit  rating  of  customers. 

From  a  financial  point  of  view  all  of  Latin 
America  may  be  divided  into  seven  groups: 
(i)  the  east  coast  countries  of  Brazil,  Argen- 
tine, Uruguay  and  Paraguay;  (2)  the  west 
coast  countries  of  Chile,  Peru,  Bolivia  and 
Ecuador;  (3)  the  northern  countries  of  Vene- 
zuela and  Colombia;  (4)  the  Central  Ameri- 
can Republics  of  Guatemala,  San  Salvador, 
Nicaragua,  Costa  Rica,  Honduras,  with  which 
Haiti  may  be  considered;  (5)  Mexico;  (6) 
the  countries  wherein  American  banking  sys- 
tems exist,  such  as  Panama,  Cuba,  Santo 
Domingo  and  Puerto  Rico,  and  (7)  the  ex- 
tensive group  of  foreign  possessions  and 
islands  such  as  British,  French  and  Dutch 
Guiana,  British  Honduras,  Trinidad,  Barba- 
dos, Jamaica,  Martinique,  Guadeloupe,  Cur- 
asao and  St.  Thomas. 

The  first  and  second  groups  of  these  South 


294     SELLING  LATIN  AMERICA 

American  countries  are  almost  entirely  under 
the  domination  and  control  of  the  European 
financier,  the  English  being  paramount,  fol- 
lowed by  Germans,  French,  Italians  and  Span- 
ish, in  the  order  named.  Throughout  Brazil, 
Argentine,  Uruguay,  Paraguay,  Chile,  Bo- 
livia, Peru  and  Ecuador,  in  all  the  larger  cities 
and  ports,  as  well  as  in  the  interior  and  isolated 
towns,  where  business  is  to  be  had,  may  be 
found  branches,  agencies,  or  representatives 
of  banking  houses  of  these  nationalities. 
They  keep  their  fingers  on  the  pulse  of  trade, 
know  mine  outputs,  crop  prospects,  cattle 
productions,  stability  of  governments,  possi- 
bilities of  revolutions  or  political  unrest,  the 
condition  of  business — in  a  word  everything 
that  has  any  bearing  on  banking  or  that  could 
by  any  possibility  reflect  on  the  money  market. 
Taking  all  these  elements  into  consideration 
together  with  the  important  factor  of  the  ques- 
tion of  supply  and  demand,  they  decide  the 
price  of  exchange  each  day  or  how  much  a 
merchant  having  a  foreign  obligation  to  meet, 
must  pay  for  the  necessary  sum  to  liquidate  his 


FINANCE  AND  CREDITS      295 

indebtedness.     Very  naturally  a  better  price 
is  quoted  for  the  money  required  if  payment 
is  to  be  made  in  coin  of  the  bank's  national- 
ity for  the  reason  that  it  necessitates  less  actual 
movement  in  the  medium  of  exchange,  the  en- 
tire transaction  as  a  rule  being  done  on  paper. 
This  preliminary  saving  of  a  fraction  of  a  per 
cent,   in  a  big  business  means  much  in  the 
course  of  a  year  and  it  has  a  strong  tendency 
to  make  the  buyer  seek  markets  so  situated  that 
he  might  profit  thereby.     On  the  other  hand 
the  Latin  American  trader  desiring  to  remit 
to  the  United  States  for  goods  bought  in  this 
country  is  forced  because  of  lack  of  direct 
financial  connection  in  South  America  to  buy 
his  exchange  on  London,  Hamburg,  Paris  or 
some  other  European  money  center,  thereby 
giving  the  European  banker  a  profit  of  a  frac- 
tion of  a  per  cent,  on  every  dollar  of  our  for- 
eign   business.     Furthermore,    invoices    and 
bills   of   lading   are   frequently   attached    to 
banking  documents  for  custom  house  clearance 
and  other  purposes,  thereby  giving  the  Eu- 
ropean banker  and  through  him,  his  clients 


296     SELLING  LATIN  AMERICA 

and  friends,  an  opportunity  of  learning  our 
prices  and  terms.  And  so,  not  content  with 
giving  the  foreign  financier  a  chance  to  make 
money  on  our  export  trade,  we  also  aid  our 
greatest  competitors  by  supplying  prices  and 
information  to  defeat  our  commercial  purpose. 

Some  mercantile  houses  in  the  larger  of 
these  countries  maintain  for  their  own  use  ac- 
counts in  New  York  against  which  they  draw 
when  liquidating  bills  in  the  States  and  do  a 
general  banking  business  as  well,  including 
the  cashing  of  drafts  and  selling  of  exchange. 
Obviously  only  a  large  business  concern  could 
afford  to  do  this  and  their  natural  tendency 
is  to  sell  direct  exchange  on  New  York  as 
high  as  the  European  banks.  The  dealer  with 
small  capital  or  the  foreign  merchant  is  in- 
variably for  one  reason  or  another  forced  as  a 
general  rule  to  do  business  through  the  Eu- 
ropean banker  when  in  need  of  American  ex- 
change. 

In  both  Venezuela  and  Colombia,  their 
nearness  to  the  United  States,  a  direct  steam- 
ship service  to  our  leading  ports  and  the  fact 


FINANCE  AND  CREDITS      297 

that  we  as  a  nation  take  the  bulk  of  their  prod- 
ucts,  combine  to  overcome  all   attempts  on 
the  part  of  Europeans  to  establish  banks  in 
these     countries.     As     the     local     exporters 
ship   their  goods   to  our  shores  where   they 
are    disposed    of    they   instruct    their    agents 
to   deposit  the  moneys  so   received  in  local 
American    banks,    against   which    they    issue 
checks  in  liquidation  of  indebtedness,  thereby 
eliminating  the  necessity  for  the  services  of  the 
international  banker.     Local  banks  in  these 
countries,  never  very  strong,  and  always  subject 
to  forced  loans  from  financially  embarrassed 
governments,    do    not    enter   materially   into 
the  business  life  of  the  community  although 
they  also  maintain  credits  in  New  York  and 
sell  drafts  against  them.     The  consequence  is 
that  every  leading  merchant  throughout  these 
lands  develops  into  a  foreign  banker,  on  a 
small  scale,  and  buys  and  sells  exchange.     As 
long  as  this  condition  prevails,  and  it  works 
most  satisfactorily,  the  foreign  bank  will  not 
be  required  to  open  its  doors. 

Practically  the  same  state  of  affairs  occurs 


298     SELLING  LATIN  AMERICA 

in  Central  America,  the  general  tendency  to 
political  unrest  and  the  existence  of  an  incon- 
vertible paper  currency  in  some  of  these  coun- 
tries, (similar  conditions  being  current  in 
Colombia)  serve  to  emphasize  distrust  in  local 
banks  and  concentrate  banking  operations  in 
the  hands  of  the  larger  mercantile  houses. 

Prior  to  the  revolutionary  troubles  which 
are  now  convulsing  Mexico,  American,  Eng- 
lish, German,  French  and  Spanish  banks  were 
to  be  found  throughout  that  country.  The 
presence  of  the  American  banker  in  this  terri- 
tory and  the  great  bulk  of  trade  movements 
between  Mexico  and  the  United  States,  kept 
the    price    of    exchange    within    reasonable 

bounds. 

In  Panama,  Cuba,  Santo  Domingo  and 
Porto  Rico,  American  banks  exist  and  Ameri- 
can currency  is  in  use  almost  exclusively.  All 
financial  calculations  are  made  in  dollars  and 
cents  and  a  complete  and  perfect  system  of  ex- 
change on  leading  cities  of  this  country  is  cur- 
rent so  that  the  subject  need  not  be  further  dis- 
cussed. 


FINANCE  AND  CREDITS      299 

As  is  to  be  supposed,  the  European  coun- 
tries having  possessions  in  the  West  Indies  and 
South  or  Central  America,  very  naturally  have 
banking  facilities  between  these  colonies  and 
each  mother  country.  In  addition,  promi- 
nent Canadian  banks  have  successfully  estab- 
lished branches  in  the  largest  of  the  British 
colonies  for  the  purpose  of  building  up  direct 
trade  with  the  Dominion  of  Canada,  thereby 
eliminating  the  tribute  London  usually  de- 
mands on  exchange.  Although  we  take  much 
of  the  exports  and  sell  these  possessions  most 
of  their  necessities,  still  the  individual  busi- 
ness done  in  each  island  or  colony  is  rela- 
tively small  and  the  field  of  operation  too 
restricted  to  warrant  other  banking  con- 
nections. Besides  exchange  on  New  York 
is  cheaper  here  than  elsewhere,  owing  to 
the  fact  that  both  Canadian  and  English  banks 
maintain  branches  in  that  city.  In  the  other 
colonies  merchants,  as  a  rule,  have  personal  ac- 
counts in  American  banks  in  the  States  and  are 
thereby  enabled  to  handle  their  own  transac- 
tions advantageously. 


300     SELLING  LATIN  AMERICA 

There  are  four  monetary  systems  in  use  in 
Latin  America:  (i)  the  gold  standard, 
wherein  gold  is  the  only  legal  tender,  other 
forms  of  money  being  maintained  at  a  parity 
with  or  without  a  government  guarantee;  (2) 
the  gold  exchange  standard,  wherein  gold  and 
other  forms  of  money  are  legal  tender,  the  con- 
version of  the  legal  tender  into  gold  being 
guaranteed  by  the  government;  (3)  the  silver 
standard,  wherein  silver  is  the  legal  tender, 
and  (4)  inconvertible  paper,  the  value  of 
which  continually  fluctuates  and  is  dependent 
entirely  upon  the  stability  of  the  government's 
credit. 

The  gold  standard  is  used  by  Bolivia,  Cuba, 
Costa  Rica,  Ecuador,  Peru,  Porto  Rico,  Santo 
Domingo,  Uruguay,  the  British,  French,  Dan- 
ish and  Dutch  West  Indies  and  possessions. 

The  gold  exchange  standard  is  in  use  in  Ar- 
gentine, Brazil,  Mexico,  Nicaragua  and  Pan- 
ama. 

The  silver  standard  is  current  in  Salvador 
and  Honduras. 

Inconvertible  paper  is  found  in  Chile,  Co- 


FINANCE  AND  CREDITS      301 

lombia,    Guatemala,    Haiti    and    Paraguay. 
The  basis  of  exchange  between  countries  de- 
pends primarily  on  the  relation  existing  be- 
tween   the    gold    value    of    their    respective 
moneys,  the  price  paid  being  materially  influ- 
enced by  the  condition  of  the  balance  of  trade 
and  the  social  or  political  state  of  the  country. 
For  example,  with  the  balance  of  trade  in 
favor  of  England,  the  price  of  exchange  on 
that  country  would  go  up  a  fraction  of  a  point 
or  so,  while  if  a  country  is  in  a  state  of  politi- 
cal or  economic  unrest,  or  at  war,  the  price  of 
exchange  on  it  goes  much  higher  than  if  con- 
ditions were  normal.     For  these  reasons  ex- 
change in  all  countries  varies  daily,  the  price 
for  the  day  being  decided  upon  the  receipt  of 
European  cables  from  the  home  institution. 
It  will  therefore  be  apparent  that  it  is  impos- 
sible to  determine  a  fixed  rate  of  exchange  for 
any   definite   period.     By  buying  when   ex- 
change is  low  and  selling  when  it  is  high,  much 
money  can  be  made,  especially  if  the  sum  in- 
volved is  large.     The  United  States  did  a  gross 
business  with  Latin  America  in  191 2  of  $526,- 


302     SELLING  LATIN  AMERICA 

468,815,  practically  all  of  which  was  paid  for 
by  European  exchange.  Assuming  that  the 
commission  charged  was  one-half  of  one  per 
cent,  the  cost  to  the  American  merchant  would 
be  $2,632,344,  which  in  itself  is  a  strong  argu- 
ment for  American  banks  in  these  lands. 

Furthermore  the  home  offices  of  all  of  these 
European  banks  having  branches  throughout 
Latin  America,  have  had  in  mind  the  render- 
ing of  financial  assistance  to  the  home  mer- 
chant or  manufacturer.  This  was  especially 
true  of  the  German  organizations,  which  were 
designed  to  foster  and  facilitate  commercial 
relations  of  all  kinds  abroad.  In  the  head- 
quarters of  these  institutions,  complete  records 
and  data  are  kept  regarding  all  overseas  mer- 
chants, their  credits  and  the  financial  turnover 
of  their  business  each  year  being  known.  As  a 
consequence  when  the  exporter  presented  his 
shipping  documents  at  say  Hamburg,  the  bank, 
should  he  so  desire,  knowing  the  rating  of  the 
importer,  discounted  the  bill,  and  for  the  serv- 
ice rendered  charged  a  commission,  while  the 
Latin  American  customer  had  the  benefit  of 


FINANCE  AND  CREDITS      303 

the  time  agreed  upon  for  payment,  according 
to  the  terms  of  the  sale.  Compare  this  perfect 
system  of  the  banks  extending  courtesy  to  the 
exporters  and  the  importers  with  the  Ameri- 
can policy  of  ''cash  against  documents''  and  we 
see  another  vital  reason  why  the  Europeans 
succeeded  in  their  conquest  of  these  markets. 
The  American  manufacturer  with  small  capi- 
tal was  handicapped.  His  business  demanded 
a  quick  turn-over;  he  had  no  way  of  ascertain- 
ing Latin  American  credits  and  no  American 
banking  connections  to  accept  his  export  ship- 
ping documents  at  a  discount.  As  a  conse- 
quence, the  door  of  this  trade  was  closed  to 
him  and  his  productions. 

Owing  to  the  fact  that  gold  coin  is  bulky 
and  heavy  to  transport  and  paper  money  of  a 
foreign  nation  always  worth  as  a  rule  much 
less  than  its  face  value,  a  traveler  is  accus- 
tomed to  carry  what  is  known  as  a  Letter  of 
Credit.  This  is  a  document  issued  by  a  bank 
to  a  person  or  concern  authorizing  him  or  it  to 
draw  on  the  bank  or  its  correspondents  drafts 
for  the  whole  or  any  desired  part  of  the  sum 


304     SELLING  LATIN  AMERICA 

named  in  the  Letter  of  Credit,  by  means  of 
sight  or  time  drafts.  Customary  means  to  pre- 
vent forgery  of  the  holder's  signature  are  pro- 
vided. On  presenting  this  document  to  the 
bank's  foreign  correspondent,  the  sum  desired 
is  advanced  in  the  money  of  the  country  or  in 
the  monetary  terms  expressed  in  the  Letter  of 
Credit.  These  Letters  of  Credit  are  always 
time  limited  and  are  made  against  cash  or 
some  suitable  guarantee  to  the  bank  issuing 
them. 

In  traveling  in  South  America  it  is  advis- 
able to  have  two  different  Letters  of  Credit, 
one  in  Pounds  Sterling  and  the  other  in  Dol- 
lars. In  Central  America,  Venezuela,  Co- 
lombia, the  British,  Dutch  and  Danish  West 
Indies  it  is  often  more  advantageous  to  use  dol- 
lars when  buying  exchange  or  getting  cash  on 
the  Letter  of  Credit,  while  in  Chile,  Argen- 
tine, Brazil  and  Uruguay,  pounds  sterling  are 
better.  Before  selling  exchange  on  your  Let- 
ter of  Credit  or  realizing  money  on  it,  al- 
ways visit  the  banks  and  see  which  one  offers 
the  best  rate  and  whether  English  or  Ameri- 


FINANCE  AND  CREDITS      305 

can  gold  is  in  demand.  By  taking  ad- 
vantage of  these  conditions  much  money 
can  be  saved  in  the  course  of  a  long  trip. 
The  opening  of  American  banks  in  Latin 
America  will  do  much  toward  making  the 
dollar  popular  and  travelers  are  advised  to 
take  out  letters  of  credit  through  United  States 
banks  with  local  branches  in  these  lands. 

It  has  been  the  understood  custom  for  the 
correspondent  banking  house  on  whom  a  letter 
of  credit  was  drawn  to  give  the  holder  all  in- 
formation desired  as  to  the  rating  and  financial 
standing  of  local  merchants  and  to  aid  him  in 
every  way  possible.  This  w^as  done  in  theory 
more  than  in  practice.  Assuming  that  your 
letter  of  credit  w^as  on  an  English  bank  in 
Buenos  Aires,  and  that  you  were  selling  cot- 
ton goods,  it  would  be  most  natural  for  the 
bank  manager  in  Argentine  to  evade  all  direct 
information  as  to  a  possible  customer's  stand- 
ing, especially  if  his  home  institution  had  been 
discounting  bills  for  a  good  client  in  England 
drawn  against  the  local  merchant.  This  is 
generally  the  attitude  of  bank  managers  in 


3o6     SELLING  LATIN  AMERICA 

competitive  lines  and  particularly  when  there 
is  a  tendency  to  cut  into  the  trade  of  their  cus- 
tomers. In  this  regard  they  can  hardly  be 
blamed  for  they  are  really  protecting  their 
patrons.  If  however,  one  is  selling  flour,  or 
something  which  England  cannot  produce, 
the  desired  information  is  given  fully  and 
freely  and  every  assistance  rendered.  Native 
or  private  bankers  are  not  so  reliable  or  as 
trustworthy  sources  of  information. 

In  only  two  or  three  South  American  coun- 
tries are  there  responsible  commercial 
agencies;  therefore,  after  getting  what  data 
you  can  from  the  bank  it  is  always  well  to 
verify  it  by  any  other  means  at  hand.  Cus- 
tomers will  often  give  references  either  in  Eu- 
rope or  America  as  to  their  standing,  which 
should  be  corroborated.  Inasmuch  as  you  de- 
sire information  as  to  your  clients'  credit  and 
standing,  you  should  be  equally  willing  to 
establish  the  reputation  of  your  house  and  to 
that  end  should  assist  as  much  as  possible  in 
supplying  whatever  facts  in  this  connection 
may  be  wanted. 


FINANCE  AND  CREDITS      307 

To  illustrate  the  insufficiency  of  our  "knowl- 
edge regarding  Latin  American  credits,  let 
me  cite  a  personal  experience.  At  the  begin- 
ning of  the  war  in  Europe,  one  of  the 
largest  daily  papers  in  Buenos  Aires  was  re- 
fused credit  for  less  than  $100.00  a  week  of 
cable  news,  because  there  w^as  no  really  reli- 
able means  in  New  York  of  satisfying  the 
manager  of  the  foreign  press  agency  that  the 
paper  was  of  the  highest  financial  standing. 
A  moratorium  had  been  declared  in  the  Ar- 
gentine and  Europe  and  at  that  time  no  direct 
banking  connections  existed  with  the  United 
States.  This  condition  of  affairs  only  served 
to  make  the  New  York  manager  insist  that  the 
service  be  paid  for  wxekly.  He  was  abso- 
lutely unwilling  to  extend  credit  for  even 
ninety  days,  provided  the  paper  paid  the  cable 
tolls  in  Buenos  Aires,  which  it  had  offered  to 
do.  The  publication,  its  plant,  equipment 
and  the  building  it  owns  and  occupies  are 
easily  worth  $5,000,000.  Furthermore  it  is 
eminently  responsible  and  reputable.     With 


3o8     SELLING  LATIN  AMERICA 

all  the  manifold  resources  of  a  great,  wealthy 
newspaper,  it  was  absolutely  impossible  for  it 
to  remit  money  to  the  United  States  to  get  the 
war  news  so  essential  for  its  readers.  Cables 
to  Europe  were  cut,  as  the  world  knows,  there- 
by preventing  it  from  getting  reports  from 
this  source.  Its  position  was  desperate.  After 
finding  that  efforts  to  obtain  the  desired  serv- 
ice from  the  press  agency  were  useless  and  that 
no  credit  would  be  extended,  the  South  Amer- 
ican editor,  in  despair,  cabled  me,  and  I 
financed  the  paper  for  five  months,  paying 
weekly  the  bills  incurred.  With  the  opening 
of  the  National  City  Bank  in  Buenos  Aires,  re- 
mittance in  full  with  interest  was  made  for 
the  money  I  had  advanced,  the  draft  sent  me 
being  one  of  the  very  first  issued  by  that  insti- 
tution. This  American  news  association  had 
a  great  opportunity  to  establish  a  profitable 
connection  in  a  country  where  a  service  of  this 
kind  is  badly  needed,  for  the  favorable  atti- 
tude of  the  press  is  of  the  greatest  benefit  in 
developing  both  business  and  friendly  rela- 
tions between  nations.     Instead  of  taking  ad- 


FINANCE  AND  CREDITS      309 

vantage  of  the  situation,  the  position  it  as- 
sumed has  positively  hurt  us  as  a  nation. 

One  of  the  things  to  be  met  and  overcome  is 
the  question  of  long  credits.  European  mer- 
chants originally  extended  much  time  to  re- 
liable customers.  Instances  are  on  record  of 
from  twenty-four  to  thirty-six  months  being 
given.  Goods  were  often  shipped  on  consign- 
ment. The  tendency  of  late,  however,  as  busi- 
ness became  established  in  these  lands  has  been 
to  curtail  credits.  This  condition  is  one 
which  demands  delicate  and  diplomatic 
handling  and  very  naturally  will  be  materi- 
ally controlled  by  circumstances.  European 
banks  were  organized,  as  hereinbefore  ex- 
plained, to  discount  long  time  paper,  provided 
the  drawer  and  the  drawee  were  considered 
good  risks.  The  Federal  Reserve  Act,  how- 
ever, falls  short  of  helping  us  in  this  regard 
for  the  life  of  a  foreign  negotiable  draft  is 
limited  by  it  to  ninety  days. 

Long  credits  are  not  to  be  encouraged. 
They  were  excusable  in  the  age  of  the  sailing 
ships  and  poor  banking  facilities,  but  with  the 


3IO    SELLING  LATIN  AMERICA 

quick  transportation  service  of  to-day  are  un- 
wise and  unnecessary.  Under  no  conditions 
should  more  than  six  months  time  be  allowed 
and  that  only  for  some  special  line  dependent 
upon  some  future  contingency,  such  for  in- 
stance as  crops — agricultural  machinery  be- 
ing a  good  illustration.  Staples  and  necessi- 
ties require  less  time  to  dispose  of  and  ninety 
days  should  be  ample.  If  possible  it  might  be 
wise  to  get  the  customer  to  agree  to  pay  one- 
third  of  the  invoice  on  receipt  of  shipping  doc- 
uments and  the  balance  in  sixty  or  ninety  days. 
On  overdue  accounts,  the  Latin  American 
merchant  has  always  been  accustomed  to  pay 
a  good  rate  of  interest. 


XXVI 

PACKING  AND  SHIPPING 

The  method  of  packing  goods  intended  for 
the  export  markets  of  Latin  America  is  wor- 
thy of  the  greatest  study  and  the  most  serious 
consideration.  Poor  and  improper  packing, 
so  characteristic  of  American  made  goods,  has 
caused  us  the  loss  of  much  business,  and  wher- 
ever I  have  been  in  these  countries  it  has 
formed  the  subject  of  much  unfavorable  com- 
ment and  highly  warranted  criticism.  Of 
late  there  has  been  a  slight  tendency  toward 
improvement  in  this  really  important  branch 
of  the  foreign  trade,  but  there  is  still  much 
opportunity  for  bettering  conditions  in  this 
regard. 

In  the  United  States  with  every  forwarding 

facility,  the  largest,  best  and  most  complete 

transportation  systems  on  earth,  we  are  prone 

to  think  of  the  rest  of  the  world  as  being  simi- 
an 


312     SELLING  LATIN  AMERICA 

larly  provided  with  modern  methods  for 
handling  goods.  The  fact  is  that  the  burro, 
the  llama,  the  camel,  the  elephant,  the  coolie 
and  the  Indian  are  yet  the  greatest  common 
carriers,  and  it  will  be  many,  many  years  be- 
fore the  shrill  whistle  of  the  locomotive  will 
supplant  the  jingling  bells  of  the  pack  train, 
or  the  slow  moving  caravan,  in  the  outer  edges 
of  terra  firma.  In  Latin  America  to-day,  in 
proportion  to  its  size,  there  are  comparatively 
few  railways,  and  fully  another  century  will 
elapse  before  it  possesses  half  the  amount  of 
mileage  that  we  have  at  present  in  the  United 
States.  This  is  primarilv  due  to  the  scarcity 
of  population  and  secondarily  to  the  inaccessi- 
bility of  many  of  its  interior  towns,  built  in 
early  days  in  remote  and  secluded  spots  so  as 
to  be  free  from  the  frequent  invasions  of  bucca- 
neers, as  were  the  coast  cities,  or  for  the  pur- 
pose of  being  near  some  rich  mine  or  fertile 
agricultural  district.  The  narrow  mountain 
trails  that  wend  their  circuitous  and  tiresome 
way  along  the  gigantic  buttresses  which  Na- 
ture has  so  profusely  placed  throughout  this 


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PACKING  AND  SHIPPING     313 

part  of  the  world  are  the  only  routes  to  these 
inland  cities.  As  a  rule  they  are  hardly  wide 
enough  for  two  mules  or  pack  animals  to  pass, 
except  at  certain  localities.  On  one  side  they 
are  bounded  by  the  walls  of  snow-tipped 
mountains,  which  raise  their  majestic  heads 
into  the  clouds,  while  on  the  other  yawning 
abysses,  hundreds,  sometimes  thousands  of  feet 
deep,  open  their  gaping  mouths,  along  the  bot- 
ton  of  which  winding  watercourses  wend  their 
way  to  the  sea. 

Many  of  the  ports  of  Latin  America  are 
open  roadsteads,  such  for  instance  as  Mol- 
lendo,  Peru,  one  of  the  gateways  to  the  interior 
of  that  country  and  Bolivia  as  well.  At  cer- 
tain seasons  of  the  year  it  is  almost  impossible 
for  one  to  land  and  I  have  known  of  vessels  to 
wait  as  long  as  six  weeks  before  getting  their 
cargoes  discharged  into  the  rolling,  tossing 
lighters  which  continually  thump  and  smash 
against  the  side  of  the  ship.  After  the  light- 
ers are  loaded,  they  in  turn  have  to  wait  days, 
weeks  and  often  months  before  a  favorable 
opportunity  arrives  for  getting  their  contents 


314     SELLING  LATIN  AMERICA 

ashore.  Without  being  conversant  with  these 
conditions  one  can  hardly  -realize,  the  strain 
and  pressure  exerted  upon  packing  cases  at 
such  times. 

After  the  goods  have  been  brought  to  land 
by  the  none  too  gentle  longshoremen,  they  are 
opened  by  the  customs  authorities  and  exam- 
ined, and  are  then  placed  upon  trains  for 
forwarding  into  the  interior  points,  for  prac- 
tically all  these  ports  are  the  terminus  of  some 
railway  leading  into  the  remote  inland  dis- 
tricts. When  they  have  gone  as  far  as  the 
train  can  take  them,  they  are  then  consigned 
to  the  tender  mercies  of  the  muleteer,  aided 
and  abetted  by  the  llama,  burro  or  mule,  and 
may  be  weeks  on  the  road  to  their  final  desti- 
nation. 

The  varying  climatic  changes  to  which  they 
are  subjected  should  also  be  given  due  con- 
sideration. Leaving  the  ice-bound  northern 
ports  of  the  States  in  winter,  they  come 
through  the  storm  tossed  waters  of  either  or 
both  oceans  to  the  port  of  disembarkation, 
where  for  days  they  may  rest  under  the  broil- 


PACKING  AND  SHIPPING     315 

ing  tropical  sun.  As  they  follow  their  path 
to  the  interior,  on  train  and  by  beast  of  bur- 
den, they  pass  through  torrid  heat  and  tropical 
rains,  across  wind  swept  plateaus,  through 
sand  and  snow  storms,  sleet  and  hail,  above  the 
clouds  in  high  altitudes,  and  down  into  green 
valleys,  across  swollen  streams,  and  on  again 
up  the  sides  of  steep  canyons,  and  through 
gloomy  woods.  Each  night  they  are  un- 
strapped from  the  animals'  backs,  and  roughly 
thrown  on  the  ground  along  the  trail  or  in  the 
filthy  barnyard  of  some  mountain  hospice. 
Before  the  stars  have  stopped  their  twinkling 
in  the  early  dawn  they  are  again  piled  upon 
the  backs  of  the  unwilling,  resisting  beasts  and 
the  dreary,  wearying,  monotonous  march  re- 
sumed. 

Custom  has  decreed  the  exact  weight  each 
burro,  llama  or  mule  will  carry  and  let  me  add 
that  these  animals  know  to  a  nicety  their  load, 
and  are  life  members  of  a  union  that  prohibits 
its  initiates  from  carrying  more  than  is  ex- 
pected of  them.  Attempts  to  overload  bring 
forth  growls,  groans  and  moans,  and  if  these 


3i6    SELLING  LATIN  AMERICA 

signals  of  protestation  are  overlooked  by  the 
attendants,  the  animal  flatly  refuses  to  budge, 
until  the  burden  is  made  the  standard  union 
size,  a  condition  of  affairs  that  must  be  ex- 
tremely satisfactory  to  the  cause  of  labor. 

The  merchant  living  in  the  interior  is  al- 
v^ays  specific  to  state  the  exact  dimensions  of 
each  box  and  how  he  wishes  it  strapped  and 
packed,  in  accordance  with  the  transportation 
which  he  will  have  available  at  the  time  the 
goods  arrive.  Obviously  a  llama  or  burro 
cannot  carry  as  heavy  a  load  as  a  mule,  and  the 
buyer,  who  generally  owns  his  own  pack  ani- 
mals, gives  his  instructions  in  accordance  with 
the  nature  and  size  of  the  animals  which  will 
form  his  caravan.  Extraordinarily  heavy 
cases  may  be  carried  suspended  from  poles  be- 
tween two  mules. 

Follow  these  shipping  instructions  to  the 
letter.  The  man  who  makes  them  out  knows 
all  about  the  difficulties  that  are  to  be  over- 
come and  is  familiar  with  every  inch  of  the 
road  that  must  be  traveled.  Do  not  let  the  su- 
perior judgment  of  your  shipping  clerk  alter 


J      J3),J,      3:>,     J,      >      3 


>    r>  . 

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*'-;>»,  5  1    ),3 


^lJ 


r^   --..  !■: 


Vopyritjftt  by   Underwood  Sf  Underwood 

Llamas   in  Cerro  de   Pasco,    Peru,  bringing  in  their   burdens   of 
copper  ore  from  nearby  Indian  mines 

"  Custom  has  decreed  the  exact  weight  each  burro,  llama  or  mule  will  carry, 
and  let  me  add  that  these  animals  know  to  a  nicety  their  load,  and  are  life 
members  of  a  union  that  prohibits  its  initiates  from  carrying  more  than  is  ex- 
pected of  them." 

See  page  j/j 


PACKING  AND  SHIPPING     317 

one  word  of  these  requirements.  Near  Du- 
rango,  in  Mexico,  there  lie  practically  all  the 
parts  of  a  large  plant,  not  made  according  to 
the  instructions  given  the  man  who  took  the 
order.  In  the  draughting  room  of  the  shops 
which  constructed  the  machinery,  they  could 
not  understand  why  the  fly  wheel  of  the  en- 
gine should  be  made  in  so  many  sections 
adapted  to  be  bolted  together,  and  so  they  con- 
structed it  as  if  intended  for  shipment  to  Buf- 
falo, and  not  so  that  a  mule  might  carry  each 
component  part  on  his  back.  The  entire  or- 
der was  executed  in  the  same  manner.  As  a 
result  the  equipment  they  turned  out  is  gradu- 
ally resolving  itself  into  iron  oxide,  at  the 
railway  station  nearest  to  the  mine  it  was  de- 
signed for,  while  the  people  who  purchased  it 
are  filled  with  contempt  for  American  meth- 
ods and  the  American  machinery  company 
thai  received  the  business  has  long  since 
vowed  never  to  accept  another  Latin  Ameri- 
can commission. 

If  the  packing  instructions  read: — ^^Each 
case   to  be  made  of  half-inch  pine  boards, 


3i8    SELLING  LATIN  AMERICA 

strapped  with  iron  bands,  half  an  inch  wide 
around  each  end,  and  wrapped  fir5t  in  water- 
proof paper,  then  sewn  in  burlap,  and  NOT 
TO  WEIGH  more  than  40  kilos  (about  100 
pounds)"— do  exactly  this  and  NOTHING 
more. 

The  iron  bands  and  the  heavy  wood  of  the, 
packing  case  insure  protection  against  break- 
age during  its  ocean  and  railway  voyage. 
The  waterproof  paper  will  serve  to  keep  the 
contents  of  the  case  from  rain  and  snow 
storms,  to  say  nothing  of  preventing  the  spray 
of  the  ocean  while  it  is  in  the  lighter,  from 
damaging  its  contents.  The  burlap  sewed 
over  all  is  a  visible  defense  against  theft  en 
route,  either  by  the  customs  authorities  or  by 
the  pack  train  men.  The  weight  of  40  kilos 
means  that  it  may  be  strapped  to  the  side  of  a 
burro,  and  form  one  of  two  such  packages  to 
be  carried  by  him.  Furthermore  the  wood  of 
the  case  being  half  an  inch  wide,  means  that 
when  the  box  reaches  its  destination,  it  can  be 
sold  to  the  coffin  maker  for  conversion  into  a 
baby's  casket,  because  wood  of  this  nature  is 


PACKING  AND  SHIPPING     319 

scarce  in  many  of  these  lands.  The  metal 
strips  will  find  another  use  and  the  waterproof 
paper  and  burlap  covering  will  serve  some 
particular  purpose,  perhaps  be  sold  to  the  up- 
holsterer. 

Your  shipping  instructions  will  also  tell  you 
exactly  what  signs  or  marks  to  put  upon  the 
outside  of  the  case  or  its  covering.  Observe 
this  with  precision.  The  net  and  gross 
weights  must  also  be  marked  thereon  in  a 
legible  manner.  Be  sure  that  in  weighing  and 
marking  the  case  you  use  the  metric  system 
for  this  is  the  only  one  used  through  all  of 
Latin  America.  They  know  nothing  of 
pounds  and  ounces.  It  is  a  wise  plan  to  have 
your  shipping  clerk  familiarize  himself  with 
this  method,  so  as  to  avoid  mistakes  in  mark- 
ing, which  may  cause  the  importer  much 
trouble  at  the  custom  house  when  the  goods 
arrive. 

Never  place  anything  of  a  foreign  nature 
in  a  packing  case  unless  expressly  instructed  to 
do  so  by  the  shipper.  Many  exporters  often 
take  advantage  of  a  small  space  available  in  a 


320    SELLING  LATIN  AMERICA 

box  to  enclose  a  package  of  cards  or  some 
other  advertising  material.  In  most  Latin 
American  countries  it  is  against  the  law  for 
a  case  to  contain  anything  more  than  what  the 
bill  of  lading  or  the  consular  invoice  expressly 
states,  and  the  trouble  that  ensues  from  this 
desire  to  really  help  the  purchaser  can  never 
be  understood  by  those  so  far  away  from  the 
native  customs  official  who  seizes  every  oppor- 
tunity to  extort  money  from  the  local  dealer 
in  the  shape  of  fines  and  fees. 

The  merchant  in  ordering  will  generally 
definitely  state  just  how  he  wants  the  goods 
which  you  are  shipping  him  declared,  so 
as  to  properly  conform  to  the  classification 
in  vogue  in  the  local  custom  house  and  its 
tariff  regulations.  Here  it  again  behooves 
you  to  follow  his  instructions  word  for  word, 
otherwise  the  officious  custom  house  employe 
sees  another  chance  to  levy  a  fine  and  the  un- 
fortunate importer  becomes  correspondingly 
disgusted  with  your  methods  of  doing  busi- 
ness with  him. 

Finally,  the  packages  should  agree  in  num- 


PACKING  AND  SHIPPING     321 

ber,  weights,  markings,  declarations  and  con- 
tents with  the  consular  invoice  and  the  bill  of 
lading.  This  will  help  materially  all  along 
the  line  from  the  receiving  clerk  of  the  steam- 
ship company  to  the  merchant  who  accepts  the 
consignment  at  its  destination. 

It  would  be  well  if  shipping  clerks  engaged 
in  the  export  trade  would  make  a  careful  study 
of  the  geography  of  the  Latin  American  coun- 
tries, and  the  various  ways  of  routing  goods, 
as  well  as  the  topography  of  each  state. 
This  would  do  much  toward  eliminating  com- 
plications. As  an  illustration  of  the  igno- 
rance so  frequently  displayed  in  this  connec- 
tion, let  me  recite  what  happened  to  a  joint 
shipment  of  beer  and  mineral  water,  intended 
for  Leon,  Nicaragua.  In  ordering  goods 
from  this  country  the  Latin  American  mer- 
chant will  often  have  a  shipment  made  up  of 
goods  from  different  cities.  He  will  instruct 
or  request  the  exporter  living  at  the  port  from 
which  the  shipment  is  to  be  made,  to  assemble 
the  several  cases  which  make  up  his  various 
orders,  and  send  them  under  one  consular  in- 


322     SELLING  LATIN  AMERICA 

voice,  his  idea  being  to  save  money,  in  the 
many  incidental  charges  made  by  consuls  and 
those  handling  his  freight.  The  beer  came 
from  Milwaukee  and  the  mineral  water  from 
the  warehouse  in  New  York  City.  The  ship- 
ping instructions  read  as  follows: 

''Ship  via  Isthmus  of  Tehuantepec,  to  Sa- 
lina  Cruz  then  via  first  opportunity  to  Leon, 
Nicaragua." 

The  intellectual  shipping  clerk  could  see  no 
valid  reason  for  sending  goods  intended  for 
Nicaragua  through  Mexico,  so  he  took  upon 
himself  their  routing,  and  as  a  result  the  goods 
were  sent  direct  from  New  York  to  Bluefields, 
Nicaragua,  on  the  east  coast  of  that  country, 
with  instructions  to  a  forwarding  agent  there 
to  dispatch  them  to  their  destination  on  the 
west  coast.  That  was  three  years  ago  and  the 
last  I  heard  of  them  was  that  they  had  been 
sold  by  the  customs  authorities  to  pay  storage 
and  other  accumulated  charges.  Of  course 
the  forwarding  agent  in  Bluefields  realized 


PACKING  AND  SHIPPING     323 

that  it  would  be  easier  to  send  goods  to  the 
North  Pole  than  across  the  country,  as  he  had 
been  instructed,  owing  to  the  fact  that  there 
was  hardly  a  mountain  trail  over  which  they 
might  be  transported.  In  addition  to  this  it 
would  take  several  weeks  to  make  the  journey, 
and  the  expense  would  be  enormous.  These 
facts  were  communicated  to  the  shippers  who 
promptly  decided  to  abandon  the  goods,  re- 
plying that  they  did  not  care  to  do  business 
in  such  an  inaccessible  country.  As  a  result 
of  this  colossal  error  goods  to  the  value  of 
more  than  $2500  were  lost  to  the  exporter 
and  the  importer,  and  bad  feeling  engendered 
on  both  sides.  The  speculator  who  bought 
them  at  the  custom  house  sale,  told  me  that  the 
contents  of  the  bottles  had  deteriorated  so  that 
the  goods  were  unsaleable  after  their  long 
stay  in  the  tropical  warehouse,  and  as  a  re- 
sult he  was  the  possessor  of  a  large  quantity 
of  bottles  for  which  he  had  no  sale. 

Shipments  from  the  United  States  to  a  for- 
eign country  require  what  is  known  as  a  con- 
sular invoice  to  accompany  them.     This  docu- 


324    SELLING  LATIN  AMERICA 

ment  states  briefly  the  contents  of  the  invoice, 
its  weight,  and  value,  from  whom  and  for 
whom  intended.  This  paper  must  be  made 
out  before  the  consul  or  vice-consul  of  the 
country  to  which  the  goods  are  to  be  exported, 
the  idea  being  to  keep  track  of  the  business  be- 
tween the  nations.  This  document  should  al- 
ways be  in  the  language  of  the  country  for 
which  the  shipment  is  intended,  although  all 
the  consuls  do  not  require  this  condition  to  be 
rigidly  complied  with.  They  must  be  taken 
to  the  office  of  the  consul  or  vice-consul  em- 
powered to  issue  and  sign  them  and  as  a  rule 
he  requires  one  or  more  copies  for  his  files  and 
for  forwarding  to  his  government,  or  to  the 
customs  authorities  at  the  port  to  which  the 
goods  are  going.  For  this  service  he  charges 
a  fee,  generally  specified  by  law.  Great  care 
should  be  exercised  in  the  preparation  of  these 
papers,  as  before  intimated.  The  importer 
generally  states  just  how  he  wishes  his  goods 
declared  in  these  documents  and  it  is  best  to 
follow  his  commands  instead  of  those  which 
may  be  issued  or  suggested  by  some  of  the  em- 


PACKING  AND  SHIPPING     325 

ployes  of  the  consular  office,  or  even  the  consul 
himself.  Besides  if  you  follow  your  shipping 
instructions  there  can  be  no  cause  of  com- 
plaint, on  the  part  of  the  buyer,  should  un- 
favorable conditions  arise. 

It  might  be  well  in  order  to  impress  upon 
the  reader's  mind  some  of  the  great  difficul- 
ties to  be  overcome  and  the  many  handlings 
that  are  received  by  goods  in  transit  to  follow 
in  detail  a  shipment  actually  made  from  New 
York  City  to  La  Paz,  Bolivia,  the  route  being 
the  usual  one  taken  by  merchandise  intended 
for  that  place.  The  order  was  placed  in 
February,  1913,  early  in  the  month  and  the 
goods  arrived  December  22nd,  1913,  being 
more  than  ten  months  on  the  way.  When  the 
American  salesman  received  the  order  at  La 
Paz,  it  was  immediately  forwarded  by  the 
next  mail  to  New  York  City,  where  it  arrived 
in  about  five  weeks.  The  shipment  of  854 
cases  was  made  from  the  factory  in  the  middle 
West  about  the  15th  of  April,  1913,  and  the 
vessel  containing  them  sailed  from  New  York 
harbor,   May   ist,    1913.     Exceptionally  bad 


326    SELLING  LATIN  AMERICA 

weather  in  the  Atlantic,  delays  in  the  Straits, 
storms  in  the  southern  Pacific,  and  time  lost 
in  discharging  cargo  intended  for  interme- 
diate ports  made  it  September  ist,  before 
the  goods  reached  Mollendo,  in  Peru,  the 
port  of  discharge  for  the  interior.  Here, 
owing  to  bad  weather,  Mollendo  being  one  of 
the  worst  ports  on  the  Pacific,  and  the  further 
fact  that  the  roads  and  custom  house  were  both 
congested  with  freight,  a  common  occurrence 
in  this  part  of  the  world,  another  month  was 
consumed  before  the  cases  were  finally  got 
ashore  and  passed  by  the  Peruvian  authorities. 
A  few  more  days  were  lost  in  loading  them  on 
the  narrow  gauge  railroad  that  runs  from 
Mollendo  to  Arequipa,  an  inland  city  of  Peru, 
and  the  end  of  the  first  railway.  Here  the 
goods  were  transshipped  to  the  road  running 
to  Puno,  Peru,  on  the  shores  of  Lake  Titicaca, 
where  they  were  again  discharged  and  allowed 
to  wait  for  many  days  before  their  turn  came  to 
be  stowed  on  the  small  steamer  plying  across 
this    perpetually    storm-tossed    lake    in    the 


PACKING  AND  SHIPPING     327 

clouds,  to  Guaqui,  where  after  being  put 
ashore  they  were  again  examined  by  the  Boliv- 
ian customs  officials.  They  were  next  placed 
on  the  train  which  took  them  across  the  wind 
swept  plateaus  of  Bolivia,  to  the  edge  of  the 
tea-cup  rim,  at  the  bottom  of  which  La  Paz 
is  situated.  Here  again  they  were  transferred, 
this  time  to  an  electric  train  which  took  them 
down  the  face  of  the  canyon  wall,  1500  feet, 
to  the  station  at  the  outskirts  of  La  Paz.  At 
this  point  Indian  cargadores  took  the  cases, 
one  at  a  time,  on  their  backs  and  carried  them 
to  the  merchant's  warehouse,  where  they  were 
again  opened,  and  checked  up,  after  which 
they  were  repacked  and  sent  on  into  the  in- 
terior towns,  mining  camps  and  his  branch 
stores,  via  llama,  burro  and  mule. 

In  this  shipment  there  was  nothing  unusual. 
It  went  over  the  route  commonly  selected  and 
took  about  the  average  length  of  time.  If 
you  have  followed  its  many  handlings  by 
rough  men,  in  all  kinds  of  weather,  you  will 
admit  at  once  the  necessity  for  strong  packing 


328    SELLING  LATIN  AMERICA 

cases  and  you  will,  I  am  sure,  cease  to  wonder 
why  it  takes  goods  intended  for  interior  cities 
so  long  to  reach  their  goal. 

A  wise  precaution,  and  one  to  be  recom- 
mended for  all  shipments  to  Latin  America, 
is  to  insure  them  against  theft  en  route.  This 
may  add  a  little  to  the  cost  of  the  article,  but 
it  is  the  only  protection  against  petty  pilfering. 
The  fact  is  that  the  minor  employes  of  the 
custom  houses,  as  well  as  the  porters,  trainmen 
and  pack  train  attendants  are  so  poorly  paid, 
and  so  completely  lacking  in  honesty  that  there 
is  every  tendency  in  the  world  to  appropriate 
whatever  appeals  to  their  fancy.  I  have 
known  what  should  have  been  cases  of  toilet 
soap  to  arrive  at  their  destination,  filled  with 
scrap-iron,  so  as  not  to  attract  suspicion  by 
their  weight,  and  this  after  duty  had  been  col- 
lected at  the  custom  house  and  freight  paid  by 
the  shipper.  Unless  there  is  an  insurance 
against  these  depredations  one  has  absolutely 
no  protection,  for  it  is  practically  impossible 
to  prove  where  and  by  whom  the  theft  was 
committed.     Furthermore     if     a     conviction 


PACKING  AND  SHIPPING     329 

were  obtained  it  would  mean  that  in  future 
all  goods  bearing  your  particular  shipping 
mark  would  be  forever  doomed  to  trouble. 

I  am  always  forced  to  laugh  when  I  think  of 
the  experience  of  a  traveller  for  a  well-known 
baking  company  in  the  United  States  who  was 
making   his   initial   trip   to   South  America. 
The  port  at  which  he  landed  was,  as  it  gen- 
erally is,  the  scene  of  a  yellow  fever  epidemic. 
Fearful  of  contracting  this  disease  he  decided 
to  take  the  first  train  for  the  capital,  located  in 
the  mountains  and  as  a  rule  free  from  the 
scourge  which  infests  the  port.     Inasmuch  as 
the  train  left  early,  he  deposited  his  twelve 
sample  cases  at  the  custom  house  with  the  keys 
and  the  request  that  after  they  had  been  in- 
spected one  of  the  men  whom  he  had  tipped 
should  send  them  by  the  evening  train  to  his 
hotel.     After  waiting  for  three  days  without 
receiving  the  trunks,  during  which  time  he  fre- 
quently sent  telephonic  messages  to  the  cus- 
toms authorities  and  telegraphed  and  wrote 
the  United  States  consul  on  the  subject,  he  de- 
cided to  go  in  person,  despite  his  fear  of  con- 


330    SELLING  LATIN  AMERICA 

tracting  fever,  and  secure  his  samples.  You 
may  imagine  his  surprise  on  reaching  his  cases 
to  find  every  one  empty — the  cakes  and  biscuits 
and  dainties  had  been  eaten  by  the  customs  em- 
ployes. Of  course  it  was  impossible  to  place 
the  blame  on  any  one,  and  his  loud  demands 
for  redress  resulted  in  the  police  escorting  him 
to  the  railway  station  and  threatening  to  ar- 
rest him  if  he  persisted  in  continuing  his  dem- 
onstrations.    His  cable  to  the  house, 

^^Samples  eaten  by  the  customs  authorities. 
Send  duplicates,'^ 

confirmed  the  belief  of  his  employers  that  he 
had  gone  suddenly  insane  and  brought  this 
brief  reply: — 

^'Return  immediately." 
As  far  as  I  know,  this  big  company  have  made 
no  further  efforts  to  enter  these  really  profita- 
ble fields,  which  are  still  dominated  by  Eng- 
lish cracker  and  biscuit  concerns.  I  trust  that 
the  moral  will  be  patent  to  my  readers  that  it 
pays  to  keep  close  to  your  sample  cases  and 
never  trust  them  with  unreliable  or  unknown 
natives. 


XXVII 

ADVERTISING 

Advertising  is  in  its  infancy  in  all  parts  of 
Latin  America.  It  has  been  given  neither 
thought,  study  or  attention,  by  the  native,  and 
where  some  particular  article  has  made  a  ^'hit" 
or  developed  into  a  profitable  seller  through 
publicity,  the  chances  are  that  the  campaign 
was  conducted  by  some  foreigner  more  or  less 
familiar  with  modern  methods.  Thousands 
of  dollars  are  yearly  wasted  by  inexperienced 
persons  in  trying  to  market  goods  along  er- 
roneous lines. 

The  great  thing  which  militates  against  suc- 
cessful work  in  this  field  is  the  enormous  per- 
centage of  illiteracy — some  authorities  placing 
it  as  high  as  85  per  cent.  Chile  admits  that  49 
per  cent,  of  her  citizens  cannot  read  or  write; 
Argentine  54  per  cent;  Cuba  56  per  cent; 
Mexico  75  per  cent.;  Brazil  85  per  cent  and 

331 


332    SELLING  LATIN  AMEPvICA 

Guatemala  92  per  cent.  This  condition  is 
easily  conceivable  when  we  stop  to  consider 
the  scarcity  of  either  public  or  private  schools, 
and  the  large  percentage  of  aborigines,  In- 
dians, negroes  and  mixed  breed  population, 
especially  in  the  northern  countries  of  South 
America,  as  well  as  in  Central  America,  Mex- 
ico and  the  Spanish-speaking  West  Indies. 

How  to  reach  this  class,  each  member  of 
which  is  a  potential  possibility  from  a  purchas- 
ing point  of  view,  is  a  problem  requiring  much 
consideration.  Bright  colors  attract  them  and 
posters  and  cards  illustrating  your  article,  and 
showing  its  application  and  practicability 
have  their  value.  Such  souvenirs  are  never 
thrown  away  but  are  preserved  for  years.  If 
any  member  of  the  village  can  read  he  is  asked 
to  transcribe  the  printing  on  the  medium,  and 
this  will  in  all  probability  form  the  subject  for 
much  discussion  so  that  ultimately  everybody 
becomes  acquainted  with  whatever  may  be 
thereon  related  or  depicted,  thereby  fulfilling 
the  mission  for  which  it  was  intended. 

To  advertise  a  luxury  to  the  uneducated 


ADVERTISING  333 

classes  is  a  waste  of  money,  for  they  have 
neither  the  means  nor  the  desire  to  indulge  in 
such  extravagances.  Very  naturally  the  great 
demand  among  these  people,  as  it  is  among 
persons  of  this  class  elsev^here,  is  for  the  neces- 
sities of  life — cotton  goods,  textiles,  patent 
medicines,  shoes,  farming  implements,  hard- 
ware, machinery,  tools  and  the  like.  These 
are  th'e  things  required  by  the  farmer  and  the 
laborer  who  make  up  the  greater  proportion 
of  the  world's  population,  and  perhaps  the 
very  best  way  to  reach  them  is  through  the  in- 
fluence of  the  middle  man,  the  jobber  and  the 
local  storekeeper.  Of  these  three,  the  village 
merchant  is  by  far  the  most  important  with 
the  masses.  He  is  always  a  man  of  standing 
in  his  community.  He  is  invariably  respected 
and  looked  up  to.  His  word  among  many 
amounts  to  law — his  judgment  final.  He  is 
the  moneyed  man  of  the  neighborhood.  He 
carries  the  peons  on  his  books — helps  them 
along  in  hard  times,  and  when  crops  are  short 
— extends  credit  when  he  thinks  it  wise  to  do 
so  and  curtails  it  when  proper.     He  is  there- 


334    SELLING  LATIN  AMERICA 

fore  in  a  position  to  force  on  this  great  class 
of  the  people  whatever  he  wishes.  I  recall 
one  of  these  typical  country  merchants  telling 
me  that  practically  every  man  in  the  neighbor- 
hood owed  him  money  and  that  therefore  he 
had  them  all  in  his  power,  so  that  he  could 
tell  them  just  what  he  wished  them  to  do  or 
buy  or  be  closed  out.  The  control  held  by 
such  a  man  in  these  remote  communities  is  far- 
reaching  and  conclusive.  It  is  quite  obvious 
that  the  proletariat  may  be  reached  through 
direct  appeal  to  him.  He  usually  takes  the 
local  papers,  and  those  published  in  his  im- 
mediate vicinity,  and  is  certain  to  subscribe  to 
one  or  more  of  the  leading  metropolitan  dail- 
ies, so  as  to  keep  in  touch  with  the  markets 
and  shipping  conditions.  He  knows  almost 
to  a  ton  what  this  year's  crop  will  amount  to; 
what  the  output  of  the  neighboring  mines  will 
be ;  how  much  rubber  will  come  from  up  coun- 
try; if  wool  will  bring  a  high  price,  or  if 
cattle  will  be  lower  than  last  year,  and  is  gen- 
erally an  all  around  encyclopaedia  of  useful 
information    on    every    local    subject.     The 


ADVERTISING  335 

course  to  pursue  is  obvious — advertise  in  the 
papers  he  takes,  and  at  the  same  time  cultivate 
his  friendship.  '  Get  to  know  him  personally 
and  intimately,  and  seek  to  do  him  favors  when 
the  opportunity  offers. 

The  educated  and  better  class  of  people  de- 
mand all  the  luxuries  and  the  nicer  things  that 
the  markets  of  the  world  afford.  In  addition 
to  their  native  language,  they  have  been  taught 
to  speak  French  and  most  of  them  use  this 
idiom  as  frequently  as  they  do  their  mother 
tongue  and  have  perhaps  at  various  times  in 
their  careers  lived  in  the  capitals  of  Europe. 
Their  tastes  are  most  modern.  They  demand^ 
the  best  and  have  the  money  to  pay  for  it. 
Obviously  it  is  a  comparatively  simple  prob- 
lem to  reach  this  class.  In  each  Latin  Ameri- 
can country  are  to  be  found  numerous  week- 
lies and  monthlies,  most  of  which  are  well  got 
up  typographically  and  profusely  illustrated, 
which  are  an  excellent  medium  for  placing 
one  in  direct  touch  with  this  desirable  portion 
of  the  purchasing  public.  They  also  take  the 
leading  metropolitan  dailies  and  these  papers  I 


336     SELLING  LATIN  AMERICA 

are  very  effective  in  bringing  to  their  atten- 
tion articles  which  they  may  desire. 

Sign  boards  are  beginning  to  be  v^ell 
thought  of  and  are  making  their  appearance 
throughout  the  larger  cities.  Posters,  well 
executed,  but  in  glaring  colors,  and  if  possible 
displaying  a  portion  of  a  nude  female  always 
attract  universal  attention  and  for  many  lines 
are  excellent  mediums.  Some  of  the  coun- 
tries charge  an  internal  revenue  tax  on  all  sign 
boards,  posters,  placards  and  street  announce- 
ments proportionate  to  their  size.  Before  un- 
dertaking a  campaign  requiring  the  use  of  this 
class  of  material,  it  is  therefore  well  to  ascer- 
tain what  this  fee  will  amount  to  and  arrange 
for  its  payment.  In  some  cities  the  hoardings 
are  sold  for  a  period  of  years,  to  the  highest 
bidder,  who  in  turn  rents  them  to  the  user  for 
a  specified  time.  These  spaces  are  often  the 
property  of  the  municipality  which  contracts 
directly  with  the  user  for  them.  In  Buenos 
Aires  these  stands  are  so  highly  thought  of  that 
they  are  often  leased  years  in  advance. 

Moving    picture    theatres    abound    in    the 


ADVERTISING  337 

larger  cities  as  they  do  with  us.  Between 
films  it  is  the  custom  to  run  advertisements 
which  are  thrown  on  the  screen  for  a  few  min- 
utes. This  is  a  rather  cheap  and  practical 
means  of  announcing  one's  wares,  inasmuch  as 
it  reaches  a  good  class  of  people. 

Street  cars  are  used  as  extensively  as  in  the 
United  States,  and  are  worthy  of  serious  con- 
sideration in  conducting  an  elaborate  adver- 
tising campaign.  Not  only  are  the  inside 
spaces  in  the  car  for  sale,  but  in  many  cities 
the  spaces  outside  both  above  and  below  the 
windows  and  the  front  and  rear  dashboards 
are  ef^fectively  used. 

Electric  signs  are  as  yet  comparatively  un- 
known. Some  of  the  larger  cities  such  as  Rio 
de  Janeiro  and  Buenos  Aires  have  a  few  but 
they  are  the  exception  to  the  general  rule. 
The  streets  are  usually  so  narrow  that  good 
locations  for  display  purposes  are  difficult  to 
find.  This  condition  will  be  overcome  in  time, 
in  many  of  the  metropolitan  towns,  with  the 
advent  of  municipal  improvements,  the  broad- 
ening of  streets  and  the  laying  out  of  modern 


338     SELLING  LATIN  AMERICA 

avenues.  Another  element  which  militates 
against  the  universal  use  of  the  '^flash"  sign  is 
the  fact  that  they  are  apt  to  get  out  of  order 
and  mechanics  experienced  enough  to  repair 
and  keep  them  in  operative  condition  are  not 
numerous  in  these  localities.  It  therefore  fol- 
lows that  for  some  years  to  come,  the  fixed 
electric  sign  would  be  the  more  ideal  for  this 
section  of  the  world. 

I  doubt  if  any  business  house  in  any  part  of 
Latin  America  is  really  familiar  with  the 
value  of  the  follow-up  letter  system  such  as 
we  use  so  satisfactorily  in  the  United  States. 
I  am  certain  that  its  introduction  and  regular 
use  will  be  found  profitable  in  developing  any 
line  of  trade,  especially  when  intended  for 
those  who  in  the  course  of  a  year  receive  com- 
paratively little  correspondence. 

With  regard  to  advertising  rates  the  Latin 
American  publisher  is  becoming  more  con- 
sistent of  late.  Time  was  when  he  asked 
$600.00  a  year  and  took  $60.00.  To-day  he 
\  keeps  closer  to  an  established  price,  although 
diplomacy    and    politeness    can    accomplish 


ADVERTISING  339 

much  toward  a  generous  reduction  on  his  first 
quotation.  Local  dealers  always  are  given  a 
far  better  rate  than  foreigners  and  before  do- 
ing business  with  a  paper  it  is  highly  advisable 
to  find  out  by  some  means  the  price  paid  by  the 
larger  business  houses  of  the  place.  This  will 
serve  you  as  a  guide  in  determining  what  to 
pay  for  your  space.  It  is  always  customary  to 
run  little  '^readers"  in  the  columns  especially 
if  you  have  contracted  for  much  advertising, 
and  as  these  cost  nothing,  it  is  well  to  provide 
appropriate  manuscript  for  them  and  insist 
upon  its  being  used. 

Local  copy  in  many  sections  of  Latin  ' 
America  is  far  from  our  idea  of  what  it  should 
be  and  may  appear  a  bit  startling  to  our  no- 
tions of  propriety.  In  Peru,  there  is  a  mineral 
water  known  as  ^'Jesus  Water,''  the  labels  on 
the  bottle,  the  colored  posters  and  other  adver- 
tising showing  Christ  at  the  spring. 

A  cognac  company  uses  cuts,  posters  and 
large  signs  depicting  the  Saviour  in  the  act  of 
pouring  out  a  glass  of  brandy  and  saying  to 
Lazarus,  lying  in  a  cofEn  at  his  feet,  ^Xazarus, 


340    SELLING  LATIN  AMERICA 

arise  and  take  a  glass  of  Cognac  Bisquit''  I 
have  seen  this  announcement  in  colors  on  the 
back  page  of  the  leading  illustrated  weekly. 

'Tou  Furnish  the  Corpse  and  Do  the 
Mourning — We  Do  the  Rest,"  is  the  ingenious 
slogan  announcing  the  advertisement  of  an  un- 
dertaking firm.  Let  me  add  that  such  adver- 
tisements are  not  considered  sacrilegious  or 
brutal,  but  simply  shov^  how  primitive  condi- 
tions are  in  these  fields. 

Doctors  advertise  patients  and  patients  ad- 
vertise doctors  in  these  favored  lands  of  the 
sun.  This  is  considered  perfectly  ethical  and 
adds  to  rather  than  detracts  from  the  reputa- 
tion of  both  parties.  I  recall  a  picture  in  half- 
tones in  the  leading  weekly  of  South  America 
showing  the  photographs  of  a  physician  and 
his  patient,  a  well  known  lady  of  the  city. 
Grouped  between  the  two  were  reproductions 
of  forty-eight  stones  alleged  to  have  been  re- 
moved from  the  sufiferer.  Pictures  of  amputa- 
tions are  shown  in  detail,  with  lifelike  illustra- 
tions of  the  surgeon.  Executions  are  also  mi- 
nutely  depicted.     I    mention    these   facts    in 


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ADVERTISING  341 

order  that  a  more  complete  insight  may  be 
gained  as  to  the  advertising  disposition  and 
temperament  of  the  public. 

Position  in  the  greater  number  of  papers  is 
an  unknown  quantity  and  its  value  little  un- 
derstood or  appreciated.  Those  connected 
v^ith  the  journal  positively  do  not  realize  its 
importance.  Even  if  a  definite  location  is 
contracted  for  in  your  agreement  you  need  not 
be  surprised  if  the  advertisement  appears  any- 
where on  any  page.  This  is  not  done  to  antag- 
onize you,  but  is  due  to  the  fact  above  men- 
tioned. Attempts  to  deduct  for  wrong  posi- 
tion in  making  payments  generally  start  all 
kinds  of  trouble  and  result  in  caustic  editorial 
comments.  Here  as  in  all  things  in  Latin 
America,  friendship  counts,  and  if  you  have 
taken  the  precaution  to  get  on  the  right  side  of 
the  editor  and  the  make-up  man,  you  can  have 
your  choice  of  positions.  I  know  of  a  repre- 
sentative who  was  advertising  a  well  known 
American  mineral  water  in  South  America 
three  years  ago.  One  of  the  dailies  in  which 
he  was  doing  much  display  work  had  just 


342    SELLING  LATIN  AMERICA 

added  a  new  two-color  press  to  its  equipment 
and  as  he  was  very  intimate  with  the  editor 
the  advertisement  appeared  in  red  ink  for  a 
long  time  in  the  center  of  the  front  page  along 
with  the  foreign  telegraphic  news,  columns 
being  broken  for  the  purpose.  No  extra 
charge  was  made  for  the  service  and  the  owner 
of  the  sheet  felt  that  he  had  done  nothing  more 
than  exhibit  his  high  regard  for  the  gentle- 
man from  the  North. 

Before  preparing  your  copy  for  Latin 
y  America  it  is  well  to  study  all  these  condi- 
tions and  see  wherein  you  can  take  advantage 
of  them  for  there  is  no  denying  that  peculiar 
opportunities  exist  which  if  profited  by  may 
mean  for  you  and  your  firm  success  in  this  ter- 
ritory. 

Once  you  have  decided  upon  your  copy  and 
the  size  of  the  space  you  intend  using,  it  is 
advisable  to  have  electro  cuts  made.  This 
saves  time  and  insures  for  your  advertisement 
a  uniformity  of  text  and  type  which  cannot  be 
guaranteed  if  the  same  is  to  be  set  up  in  the 
ofiice  of  the  paper  for  each  issue.     When  these 


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\i7-: 


South  American  appreciation  of  advertisements  "  made  in  U.  S.  A." 

"  They  recognize  Americans  as  the  best  advertisers  in  the  world  and  not 
being  famihar  with  EngUsh  appropriate  and  use  our  ilhistrations  irrespective 
of  the  tact  that  they  have  absolutely  no  bearing  on  what  they  are  advertising." 

See  page  343 


ADVERTISING  343 

electros  are  to  be  used  in  rotation  they  should 
be  numbered  and  printed  instructions  for  the 
foreman  should  accompany  them. 

Plagiarism  is  rampant.  They  recognize 
Americans  as  the  best  advertisers  in  the  world 
and  not  being  familiar  with  English  appro- 
priate and  use  our  illustrations  irrespective  of 
the  fact  that  they  may  have  absolutely  no  bear- 
ing on  what  they  are  advocating. 

Typical  of  this  purloining  I  recall  a  well 
known  picture  from  an  American  cereal  ad- 
vertisement showing  two  men  seated  in  a  din- 
ing car,  eating  breakfast  food.  Outside  snow 
is  all  over  the  ground  and  trees;  ^'Smoke 
El  Toro  Cigar"  is  the  announcement  beneath 
the  sketch  and  in  no  place  does  a  cigar  ap- 
pear or  is  any  reference  made  to  one.  Who- 
ever selected  this  picture  did  not  even  have  the 
good  judgment  to  modify  the  same  to  the  ex- 
tent of  cutting  out  the  snow  storm,  in  a  land 
where  snow  is  unknown  or  eliminating  the 
raised  spoons  piled  high  with  the  cereal  and 
held  in  the  hands  of  the  travelers. 

The  full  page  advertisements  of  Pillsbury's 


344    SELLING  LATIN  AMERICA 

Flour  were  bodily  appropriated  and  used  by  a 
local  cement  manufacturing  concern.  The 
fact  that  they  also  put  up  cement  in  bags 
seemed  enough  to  warrant  them  in  using  this 
copy,  although  the  picture  of  the  cook  sur- 
rounded by  the  paraphernalia  of  his  office  was 
not  altered  in  the  least. 


XXVIII 

RECIPROCITY 

Foreign  trade  to  be  permanent  should  be  es- 
tablished on  a  reciprocal  basis.  To  expect  to 
ship  a  nation  your  raw  or  manufactured 
materials,  receiving  only  in  exchange  there- 
for a  monetary  consideration,  is  neither  equit- 
able, sensible  nor  practical.  It  is  decidedly 
lacking  in  business  judgment  and  reflects  on 
the  sincerity  of  the  country  endeavoring  to  do 
its  trade  along  such  lines. 

Perhaps  the  chief  reason  that  European 
Powers  have  obtained  such  a  foothold  in  for- 
eign markets  is  due  to  the  fact  that  they  take 
in  exchange  much  of  the  crude  exports  of 
these  lands  and  convert  them  into  finished 
factory  products.  This  from  an  economic 
standpoint  is  as  it  should  be.  It  gives  em- 
ployment to  the  citizens  of  the  importing  na- 
tions, develops  and  maintains  their  merchant 

345 


346     SELLING  LATIN  AMERICA 

marine,  necessitates  less  material  movements  in 
the  medium  of  exchange  in  payment  for  goods 
on  the  part  of  those  concerned  in  the  transac- 
tion and  more  firmly  entrenches  each  in  the 
other's  business  and  friendly  relations. 

The  various  countries  comprising  Latin 
America  are  in  no  sense  manufacturing  ones. 
They  possess  few  if  any  factories  or  plants  and 
these  are  usually  devoted  to  the  perfection  of 
some  local  necessity,  such  as  v^ines,  cigarettes, 
cigars,  soap,  sugar,  and  other  articles  for  per- 
sonal use  or  consumption.  They  are  however 
the  largest  producers  of  raw  materials  the 
world  knows.  Due  to  our  shortsightedness  as 
a  nation,  we  have  allowed  the  European 
merchant  and  manufacturer  to  take  these 
products  from  Nature's  laboratory,  elaborate 
the  finished  article  therefrom  and  during  each 
stage  of  its  perfection,  from  its  origin  to  its 
completion,  we  have  paid  a  profit,  not  to  one, 
but  to  several  enterprising  foreigners. 

The  Latin  Americans — in  fact  no  nation — 
will  buy  from  us  for  sheer  love  or  their  high 
regard  for  us  as  a  people,  or  even  from  dire 


RECIPROCITY  347 

necessity  for  that  matter.  Most  of  these  coun- 
tries achieved  their  independence  from  Spain 
because  they  refused  to  be  further  exploited  by 
the  mother  country.  It  behooves  us  as  modern 
and  liberal  minded,  wide-awake  business  men, 
to  develop  our  trade  in  these  territories  so  that 
our  exports  to  each  country  will  be  paid  for 
by  the  things  which  we  import  from  it.  This 
is  not  a  difficult  problem  to  solve,  especially  as 
at  the  present  time  our  imports  from  them 
exceed  the  value  of  our  exports  to  them  by  ap- 
proximately $100,000,000  yearly.  This  sum 
should  represent  the  amount  of  trade  expan- 
sion with  the  United  States  these  countries 
will  be  in  a  position  to  stand  on  a  reciprocal 
basis. 

Another  feature  in  this  connection  which 
has  developed  since  the  beginning  of  the  pres- 
ent war  is  the  monetary  situation  in  Latin 
America.  These  countries  as  the  world 
knows  were  borrowing  nations,  and  practically 
dependent  upon  Europe  for  all  of  their  financ- 
ing. To-day  Europe  cannot  aid  them  in  this 
respect  and  they  have  turned  toward  us  for 


348    SELLING  LATIN  AMERICA 

assistance,  thereby  placing  us  in  a  much  more 
advantageous  position  than  we  formerly  oc- 
cupied with  relation  to  developing  our  trade 
along  reciprocal  lines,  for  a  lending  nation 
can  always  dictate  to  the  borrowing  one. 

Following  the  stringency  in  the  European 
money  markets  and  their  inability  to  lend 
further  financial  aid  to  Latin  American  en- 
terprises, there  has  been  a  decided  slump  in 
property  values  of  all  kinds,  thereby  giving 
the  American  investor  desirous  of  entering 
these  fields  an  excellent  opportunity  to  acquire 
controlling  interests  at  the  minimum  expense 
in  undertakings  which  will  ultimately  rehabil- 
itate themselves  as  money  making  propositions. 
These  conditions  should  not  be  lost  sight  of 
during  the  readjustment  of  values  in  this  part 
of  the  world. 

To  be  more  specific,  perhaps  80  per  cent,  of 
the  world's  supply  of  bismuth  comes  from 
Peru.  This  metal  is  largely  used  in  the  arts 
and  medicine.  An  Italian  company  owns 
practically  all  the  mines.  Germans  and  Eng- 
lish buy  the  ore  and  ship  it  to  their  respective 


RECIPROCITY  349 

clients  in  Europe.  On  its  arrival  it  is  sold 
to  smelters  which  produce  the  metal  there- 
from. Manufacturing  chemists  purchase  this 
and  convert  it  into  the  bismuth  subnitrate  used 
so  extensively  by  the  physician  of  to-day.  This 
product  is  imported  by  the  American  drug 
broker  who  sells  it  to  the  jobber,  whose  travel- 
ler in  turn  disposes  of  it  to  the  wholesale  chem- 
ist through  whom  it  reaches  the  local  druggist 
and  finally  the  consumer.  It  is  safe  to  say 
that  fully  30  per  cent,  of  the  prescriptions, 
written  by  the  doctor  and  compounded  by  the 
apothecary  call  for  this  drug.  If  the  metal  is 
to  be  used  in  the  arts  it  goes  through  as  many 
hands  before  reaching  the  ultimate  user.  It 
is  not  difficult  therefore  to  see  that  from  the 
mine  to  the  consumer  there  are  six  or  seven 
profits  made,  several  of  which  might  be  elimi- 
nated, thereby  reducing  the  cost  of  the  article, 
provided  the  ore  was  brought  direct  to  this 
country  and  the  reduction  m.ade  here.  Fur- 
thermore instead  of  going  around  the  Horn  to 
Europe,  the  freight  through  the  Panama 
Canal  to  an  American  port  would  be  much 


350    SELLING  LATIN  AMERICA 

less,  consequently  effecting  a  great  initial  sav- 
ing. Why  does  not  some  manufacturing 
chemical  house  take  advantage  of  this  oppor- 
tunity? 

This  same  condition  of  affairs  is  true  of  cin- 
conah,  from  which  quinine  is  made,  iodine, 
opium,  belladona,  menthol,  castor  oil,  licoric, 
linseed  and  many  other  extensively  used  and 
well  known  drugs.  What  a  chance  exists  in 
this  field  alone  to  establish  a  reciprocal  trade, 
and  at  the  same  time  to  reduce  the  high  cost  of 
these  medicines! 

Last  year  Bolivia  sent  to  Germany  and  Eng- 
land 50,000  tons  of  tin.  We  bought  back  30,- 
000  tons  of  this  tin  from  the  wide-awake  Teu- 
ton and  Anglo-Saxon  merchants,  or  expressed 
in  figures  we  contributed  more  than  $16,000,- 
000  to  the  bank  accounts  of  these  gentlemen. 
We  are  the  largest  users  of  tin  in  the  world 
and  Bolivia  is  the  second  largest  tin  producing 
country,  with  thousands  of  acres  of  unex- 
ploited  tin  fields  yet  to  be  developed.  It  is 
about  two-thirds  as  far  again  from  Bolivia  to 
Europe  as  it  is  to  the  United  States.     With 


RECIPROCITY  351 

proper  shipping  facilities  and  the  use  of  the 
Canal  or  by  going  to  California,  the  saving  in 
freight  alone  should  be  sufficient  to  interest 
some  progressive  concern  in  the  handling  of 
this  article  direct. 

Europe  sends  its  wool  buyers  to  Argentine 
and  Uruguay.  I  have  attended  these  markets 
and  have  yet  to  meet  an  American  buyer  rep- 
resenting any  of  our  woolen  cloth  manufac- 
turers. We  buy  much  of  our  wool  from  Eu- 
ropean markets,  thereby  giving  Belgians, 
French,  English  and  Germans  who  have  ini- 
tiative and  enterprise  a  profit  on  their  busi- 
ness acumen.  Is  this  sensible?  It  only  adds 
to  what  each  one  of  us  pays  for  our  clothes. 

Ecuador's  chief  product  is  cocoa.  It  is  the 
largest  grower  of  this  commodity  in  the  world. 
The  bean  is  perhaps  the  richest  and  most 
highly  flavored  and  is  in  great  demand  in  the 
trade.  Europe  buys  80  per  cent,  of  this  article 
and  although  w^e  are  the  biggest  individual 
users  of  chocolate  on  earth,  our  merchants  pur- 
chase but  20  per  cent,  direct.  Then  England 
and   Germany,   and  even  little   Switzerland, 


352     SELLING  LATIN  AMERICA 

turn  around  and  sell  us  back — at  a  profit  of 
course — fifty  per  cent,  of  what  they  bought  in 
Ecuador.  And  we  call  ourselves  merchants! 
Who  exhibits  the  good  judgment  in  such  a 
transaction? 

The  linseed  of  the  world  is  produced  by 
Argentine  and  India.  The  small  farmer 
trades  it  for  supplies  to  the  village  merchant, 
who  in  turn  exchanges  it  for  goods  with  the 
jobber  in  the  capital  or  seaport.  To  these  men 
come  the  buyers  for  the  Greek  firm  which 
practically  controls  this  industry  and  purchase 
the  seed,  and  we,  the  most  extensive  users  of 
linseed  oil  in  the  world,  pay  our  toll  and  trib- 
ute to  the  able  and  shrewd  men  who  have  their 
headquarters  in  Athens.  Isn't  there  some- 
thing radically  wrong  here? 

The  alpaca  gives  a  fine  soft  wool.  Prac- 
tically all  of  this  material  is  bought  in  Bo- 
livia by  Europeans  who  manufacture  the  cloth 
which  they  afterwards  sell  us.  I  cannot  un- 
derstand why  some  sagacious  American  has 
not  entered  this  profitable  market. 

The  seasons  in  the  southern  part  of  South 


RECIPROCITY  353 

America  are  reversed,  so  that  they  have  sum- 
mer when  we  have  winter,  which  means  that 
their  fruits  and  vegetables,  melons  and  berries 
are  ripe  when  we  have  snow  on  the  ground. 
The  apples,  peaches,  pears,  plums,  apricots, 
nectarines,  cherries,  grapes  and  melons  of 
Chile  are  as  good  as  our  own.  A  profitable 
return  awaits  the  one  who  will  forward  these 
goods  in  refrigerator  ships  to  our  big  northern 
markets. 

In  Colombia  and  Ecuador  large  quantities 
of  tagua  or  ivory  nuts  formerly  grew  wild. 
They  are  about  the  size  of  a  goose  tgg^  or 
slightly  larger,  very  hard  and  a  dead  white, 
protected  by  a  thin  black  skin.  For  years  no 
one  knew  what  to  do  with  them.  Finally  an 
enterprising  German  found  that  they  could  be 
converted  into  buttons.  To-day  the  ivory  nut 
is  cultivated  for  this  purpose,  and  forms  one  of 
the  leading  exports  from  the  countries  named ; 
the  shipments  for  1913  amounted  to  over 
$5,000,000.  The  finished  button  is  sold  not 
only  to  the  Latin  Americans,  but  throughout 
the  world  as  well. 


354    SELLING  LATIN  AMERICA 

Brazil  is  the  second  largest  diamond  pro- 
ducing country  in  the  world.  English  com- 
panies have  $50,000,000  invested  in  these 
mines,  v^hich  means  that  the  diamonds  ob- 
tained therefrom  pass  through  the  hands  of 
several  Europeans  before  they  ultimately 
reach  the  wearer  in  the  United  States.  One 
State  of  Brazil — Minas  Geraes — has  for  the 
past  six  years  been  exporting  gold  to  Europe, 
sometimes  as  much  as  $2,000,000  a  month,  be- 
cause Germans,  Belgians  and  Englishmen  own 
the  mines. 

Chile  contains  the  largest  known  deposits  of 
'^caliche" — that  is,  the  earthy  material  from 
which  nitrate  is  made.  This  article  is  exten- 
sively used  in  the  arts,  in  the  production  of 
gunpowder  and  other  high  explosives  and  also 
as  a  fertilizer.  Last  year  she  exported  50,78 1  ,- 
241  quintals,  the  world's  total  consumption 
for  the  same  period  of  time  being  51,296,489 
quintals.  I  know  of  but  one  American  house 
established  in  these  fields.  The  business  is 
controlled  almost  entirely  by  English  and  Ger- 
man companies. 


RECIPPvOCITY  355 

We  should  also  make  a  more  determined 
effort  to  finance  municipal  and  national  im- 
provements in  these  countries.  The  money 
lenders  of  Europe  have  been  quick  to  take  ad- 
vantage of  such  opportunities.  They  proved 
good  investments  for  them.  We  should  also 
find  them  profitable,  under  the  right  condi- 
tions. In  this  field  there  are  and  will  be  for 
years  to  come  great  possibilities,  especially  in 
electric  and  gas  plants,  electric  and  steam 
roads,  water  works,  sewers,  and  sanitations, 
mines  and  smelters.  The  benefits  to  be  de- 
rived from  such  a  source  of  investment  are 
only  too  obvious.  They  give  our  engineers 
and  contractors  and  all  connected  with  such 
an  enterprise  an  opportunity  to  force  upon 
these  countries  our  products  and  methods, 
provide  permanent  employment  for  many  of 
our  countrymen,  who  in  return  will  create  a 
demand  for  goods  made  in  America.  Eng- 
land leads  the  world  in  outside  investments  of 
this  nature,  having  over  $10,000,000,000  in 
various  foreign  lands,  $5,000,000,000  of  which 
is  in  Latin  America.     The  German  long  ago 


356    SELLING  LATIN  AMERICA 

saw  the  advantage  of  following  in  the  foot- 
steps of  the  Briton  and  is  the  second  largest 
investor  in  such  enterprises  abroad. 

International  bankers  when  making  loans  to 
private  persons  or  governments  interested  in 
these  progressive  movements  always  stipulated 
that  the  materials  to  be  used  should  be  pur- 
chased from  the  country  which  furnished  the 
money  for  the  development.  This  was  a  fair 
and  far-seeing  business  proposition  and  should 
serve  as  a  guide  for  us  in  our  future  dealings 
with  these  markets. 

Chile  to-day  is  spending  $400,000,000  on 
harbor  improvements  and  fortifications,  most 
of  the  work  being  in  the  hands  of  Europeans. 
The  plans  contemplated  will  require  many 
years  to  complete,  and  during  all  this  time 
European  material  will  be  used  and  workmen 
from  the  Old  World  will  derive  profit  from 
the  undertaking. 

An  American  first  had  the  concession  to 
build  the  subway  in  Buenos  Aires.  He  spent 
months  trying  to  get  capital  in  the  United 


RECIPROCITY  357 

States  without  success.  Finally  a  German 
raised  the  money  in  Hamburg  and  now  every- 
thing about  the  line  from  the  electrical  in- 
stallation to  the  motorman  and  his  uniform  is 
^'Made  in  Germany."  Being  the  first  and 
only  underground  road  in  Latin  America  it 
was  written  about  and  talked  of  ever5rvvhere, 
and  at  all  times  the  Germans  got  credit  for 
the  enterprise  and  were  well  advertised  as 
efficient  and  wonderful  engineers.  This  was 
another  opportunity  lost  to  us. 

Before  the  European  War  started  a  syndi- 
cate of  English,  French  and  Germans  had 
agreed  to  expend  $200,000,000  in  Colombia 
building  railways  and  in  making  the  Magda- 
lena  River,  the  only  highway  to  the  capital  at 
Bogota,  navigable  at  all  seasons  of  the  year. 
Due  to  present  hostilities  they  had  to  abandon 
the  project.  The  terms  offered  by  Colombia 
were  excellent,  including  5  per  cent,  interest 
on  the  capital  and  the  further  provision  that 
the  government  would  ultimately  within  a 
specified  period  take  over  the  road,  paying  an 


358    SELLING  LATIN  AMERICA 

exceptional  profit  to  the  original  investors. 
Here  is  an  excellent  opportunity  for  American 
capital  to  develop  a  reciprocal  market. 

One  of  the  chief  reasons  for  the  scarcity  of 
invested  American  capital  in  Latin  America 
is  the  indefinite  and  indifferent  attitude  of  our 
State  Department  in  failing  to  protect  its 
citizens  abroad  or  in  seeking  redress  for  in- 
juries done  individuals  or  business  conducted 
in  these  countries. 

No  race  of  men  are  as  enterprising  or  ven- 
turesome or  more  truly  pioneers  in  every  sense 
of  the  word  than  v^e  Americans.  This  trait 
is  a  natural  inheritance  from  our  forefathers, 
who  left  comparatively  civilized  and  com- 
fortable Europe  to  gain  a  livelihood  in  the 
wilds  of  unknown  and  unexplored  America. 
We  are  a  practical  people,  also,  and  when 
through  years  of  trying  experiences  we  became 
definitely  impressed  with  the  fact  that  in  our 
foreign  ventures  we  had  neither  the  co-opera- 
tion nor  the  protection  of  our  government, 
very  naturally  we  abandoned  these  tempting 
fields   of  business   and   allowed   them   to   be 


RECIPROCITY  359 

profitably  tilled  by  the  citizens  of  European 
governments  which  sympathized  with  their 
subjects  in  their  efforts  to  develop  trade  and  at 
the  same  time  provided  them  adequate  protec- 
tion of  a  substantial  and  impressive  type. 

In  the  early  days  which  marked  the  Eu- 
ropean campaign  for  the  commercial  suprem- 
acy of  Latin  America,  most  of  these  countries 
were  the  scenes  of  much  bloodshed  and  the 
violence  of  devastating  revolutions.     As  a  re- 
sult of  the  instability  of  their  governments, 
there  was  positively  little  or  no  security  of  life 
or    property.     Concessions     solemnly    made 
were  ruthlessly  cancelled.     Business  ventures 
involving  the  outlay  of  immense  patience  and 
large  capital  were  completely  wiped  out.     In 
brief  the  foreigner  in  these  lands  was  looked 
upon  as  an  intruder  and  treated  with  scant 
consideration.     When    Americans    were    in- 
volved in  such  occurrences,  our  State  Depart- 
ment, with  very  few  exceptions,  ignored  the 
petitions  of  the  victims,  until  its  neglect  in  this 
regard  became  so  notorious   that  finally  no 
promoter  had  the  temerity  to  seek  capital  in 


36o    SELLING  LATIN  AMERICA 

this  country  for  any  Latin  American  enter- 
prise. This  condition  of  affairs  had  much  to 
do  with  turning  the  current  of  these  ventures 
toward  European  money  markets,  an  oppor- 
tunity eagerly  accepted  by  all  parties. 

On  the  other  hand,  the  European,  whether 
prospecting  in  the  snow-topped  mountains  or 
uplands  of  Bolivia,  or  in  the  jungles  of  the 
Amazon,  knew  that  his  government  kept  a 
watchful  eye  on  him  and  encouraged  his  every 
effort,  first  because  this  v/as  the  privilege  and 
duty  of  a  government  and  secondly  the  success 
of  the  individual  in  these  lands  ultimately 
meant  prosperity  for  the  nation.  If  he  was 
robbed,  imprisoned  or  murdered,  if  the  re- 
sult of  his  years  of  labor  was  destroyed  in  na- 
tional or  local  uprisings,  the  warship  would 
always  materialize  to  emphasize  the  collection 
of  compensation  when  diplomacy  failed. 

Such  consideration  for  their  people  on  the 
part  of  the  European  governments  duly  im- 
pressed the  Latin  American  mind,  and  more  so 
especially  when  he  was  heavily  taxed  to  reim- 
burse the  foreigner  for  injuries  received.     As 


RECIPROCITY  361 

a  result  the  European  became  respected  more 
and  more  from  Mexico  to  Patagonia,  and  was 
allowed  to  pursue  his  way  in  comparative 
peace,  the  converse  of  this  proposition  being 
true  of  the  unfortunate  American,  who  could 
not  expect  governmental  protection  and  who 
became  the  object  of  much  abuse  and  ridicule 
in  these  lands.  The  truth  of  these  statements 
is  so  obvious  that  it  is  unnecessary  for  me  to 
cite  any  illustrations  in  support  of  them. 

Socially  speaking  all  of  Latin  America  may 
be  divided  into  two  general  classes,  the  poli- 
tician and  the  business  man.  As  a  rule  the 
"politico"  has  been  the  cause  of  all  the  unrest 
and  upheavals  these  countries  have  experi- 
enced, while  the  advance  and  progress  of  these 
nations  is  due  to  the  "commerciante" — the 
man  who  uses  his  brain  and  invests  his  money 
in  its  various  ventures.  The  larger  progres- 
sive enterprises  in  Spanish  America— the 
building  of  railroads,  the  developing  of  mines, 
exporting,  importing,  in  brief,  commerce  as 
a  whole — is  chiefly  carried  on  by  foreigners, 
aided  by  a  few  ambitious,  practical,  far-see- 


362     SELLING  LATIN  AMERICA 

ing,  native  business  men,  never  the  politician. 
Commerce  is  a  great  civilizing  agency.  The 
higher  in  the  scale  of  civilization  a  people  are, 
the  more  secure  will  trade  relations  with  them 
be.  The  larger  and  more  important  countries 
of  Latin  America  have  at  last  begun  to  realize 
that  internal  peace  means  prosperity,  that 
prosperity  attracts,  yes  invites  capital,  even 
from  the  timid  and  those  whose  government 
does  not  stand  behind  them  in  a  dignified 
manner. 

As  a  consequence,  despite  the  unfavorable 
attitude  of  the  United  States  State  Depart- 
ment toward  foreign  investment,  and  with  the 
idea  of  showing  our  Latin  American  friends 
that  we  are  sincerely  interested  in  establishing 
our  trade  relations  with  them  on  a  reciprocal 
basis,  American  capital  in  large  sums  is  be- 
ginning to  find  its  way  into  this  hitherto,  for 
us,  closed  market.  Panama  has  just  been 
loaned  $3,000,000  American  money  to  be  used 
in  the  construction  of  railways  and  roads, 
thereby  bringing  the  producer  nearer  to  the 
markets  and  the  shipping  points  of  the  coun- 


RECIPROCITY  363 

try.  Within  five  years  I  venture  to  predict 
that  as  a  result  of  this  investment,  our  trade 
with  Panama  will  have  materially  increased, 
owing  to  the  fact  that  agricultural  products 
heretofore  prevented  from  reaching  the  con- 
sumer will  be  able  to  do  so  with  comparative 
ease,  especially  in  the  case  of  tropical  fruits, 
cocoanuts,  copra  and  sugar. 

American  bankers  have  loaned  the  Argen- 
tine Government  $15,000,000  in  6  per  cent, 
gold  notes.  The  temperament  of  the  public 
as  to  the  attractiveness  of  the  loan  may  be 
readily  estimated  when  I  state  that  the  entire 
amount  of  securities  to  cover  the  indebtedness 
was  sold  before  four  o'clock  of  the  day  on 
which  they  were  offered.  The  successful  con- 
summation of  this  business — the  first  ever  con- 
cluded directly  between  the  Argentine  Gov- 
ernment and  the  bankers  of  this  country — will 
serve  greatly  to  strengthen  the  ^'entente  cor- 
diale"  now  so  rapidly  developing  between  the 
United  States  and  the  rest  of  Latin  America. 

Nor  is  this  all.  Movements  are  now  on  foot 
leading  to  investments  of  American  capital  in 


364    SELLING  LATIN  AMERICA 

large  sums  in  practically  all  of  our  sister  re.- 
publics.  With  each  step  in  this  direction  we 
as  a  nation,  and  also  our  manufacturers  and 
merchants,  become  more  firmly  entrenched  in 
the  Latin  American  commercial  world,  and 
our  mercantile  supremacy  in  these  lands  is 
more  positively  assured. 

As  a  typical  illustration,  of  what  can  be  done 
in  these  countries  when  the  subject  is  handled 
intelligently  let  me  mention  the  case  of  the 
United  Fruit  Company,  which  operates  in 
Colombia,  Cuba,  and  practically  all  of  Cen- 
tral America.  Starting  in  187a  with  a  small 
beginning,  this  organization  is  now  one  of 
the  most  solid  to  be  found  anywhere  in  the 
world.  In  Costa  Rica  alone  they  have  in- 
vested over  $19,000,000  in  bananas,  while 
enormous  sums  are  also  being  expended  in 
other  countries  in  sugar,  coffee,  cocoa,  cocoa- 
nuts,  the  development  of  mines  and  the  building 
of  railroads  and  hotels.  In  fact  the  prosperity 
of  all  these  nations  is  directly  due  to  the 
presence  of  this  great  organization,  which 
finds   a  market  for  its  products  in  Europe 


RECIPROCITY  365 

and  the  United  States,  and  which  through  its 
various  local  branches  and  stores,  as  well  as 
its  numerous  employes,  is  a  potent  factor  in 
introducing  American  goods  and  American 
ideas  to  all  with  whom  it  comes  in  contact. 
Its  large  fleet  of  ships  come  to  all  the  leading 
seaports  of  this  country,  and  the  vast  trade 
which  it  now  controls,  and  which  is  still  in  its 
infancy,  is  capable  of  enormous  growth.  As 
one  example  of  what  its  business  means  in 
freight  alone,  I  may  state  that  from  the  port 
of  New  Orleans  this  company  shipped,  last 
year,  nearly  150,000  car-loads  of  bananas  to  the 
West  and  Middle  West.  The  model  hospitals 
which  it  has  installed  in  each  of  the  countries 
in  which  it  operates  for  the  free  treatment  of 
its  servants  have  caused  our  physicians  to  be 
highly  respected  throughout  this  portion  of 
Central  and  South  America,  and  as  a  conse- 
quence the  native  now  comes  to  the  United 
States  for  serious  surgical  operations  and 
inedical  treatment,  instead  of  to  Europe  as 
formerly.  Further  than  this,  the  intimate  as- 
sociation bound  to  result  from  so  many  Ameri- 


366     SELLING  LATIN  AMERICA 

cans  living  in  Latin  American  communities 
has  tended  to  develop  in  each  du^  respect  for 
the  ability  and  integrity  of  the  other,  and  this 
has  been  beneficial  to  all  parties  concerned. 

It  is  to  be  hoped  that  all  the  countries  of 
Latin  America  w^ill  take  advantage  of  the  dis- 
position so  apparent  on  the  part  of  our  finan- 
ciers to  extend  external  credits  among  them 
and  that  every  effort  will  be  used  by  those  in 
power  to  establish  lasting  internal  peace  and 
a  guarantee  of  protection  against  unwarranted 
attacks  on  foreign  capital.  Such  an  assur- 
ance will  do  much  to  develop  the  commer- 
cial side  of  these  really  wonderfully  produc- 
tive lands. 

Is  it  not  the  duty  of  our  State  Department  to 
assist  such  a  movement  by  giving  capitalists 
and  merchants  of  this  country  its  positive  and 
definite  assurance  that  legitimate  investors  and 
investments  will  be  efficiently  and  effectively 
protected  by  the  United  States  Government, 
along  the  same  lines  as  those  in  general  use  by 


RECIPROCITY  367 

the  European  powers?  Such  an  edict  on  the 
part  of  the  United  States  would  remove  the 
last  great  barrier  to  American  trade  develop- 
ment in  Latin  America. 


XXIX 

HEALTH  PRECAUTIONS 

Travel  in  Latin  America  can  be  made 
comparatively  safe,  from  a  medical  point  of 
view,  by  the  strict  observance  of  a  few  common 
sense  precautions.  Perhaps  the  first  thing  to 
be  considered  is  the  question  of  water.  With 
but  one  or  two  exceptions,  drinking  water  is 
notoriously  bad  in  all  of  these  countries,  be- 
ing polluted  and  almost  certain,  if  drunk,  to 
develop,  sooner  or  later,  either  typhoid  or 
some  other  intestinal  disorder.  Credence 
should  not  be  placed  in  the  w^ell-intentioned 
statement  of  the  native  that  the  water  is  good. 
Like  their  ancestors,  through  the  continual 
'drinking  of  the  local  water,  they  have  become 
self-immunized  to  any  form  of  contagion  from 
its  use.  Because  the  water  comes  from  snow- 
clad   mountains   does   not   insure   its   purity, 

either.     Most  mountain  streams,  long  before 

368 


'''T' '.  '  ?    ^ 


P/iotuyraph  by   Underwood  S(  Underwood 

The  Plaza  Hotel  in  Buenos  Aires 


„^  -     t'*- .^ 


HEALTH  PRECAUTIONS      369 

they  reach  reservoirs,  are  used  for  washing 
clothes  or  bathing  and  become  infected  in  this 
manner.  It  is  obviously  out  of  the  question  to 
boil  all  water  prior  to  drinking  and  if  you  are 
obliged  to  take  many  trips  to  the  interior  or  off 
the  beaten  paths  of  travel,  bottled  mineral 
waters  are  not  always  obtainable.  Therefore 
it  is  wise  for  the  purposes  of  such  excursions  to 
carry  any  of  the  well-known  makes  of  pocket 
filter,  which  come  especially  made  for  such 
purposes.  Let  me  take  advantage  of  this  op- 
portunity to  correct  the  erroneous  idea  enter- 
tained by  so  many  of  the  laity  that  locally  made 
aerated  mineral  waters  are  free  from  bacteria. 
They  should  be  shunned  as  much  as  the  local 
unboiled  water.  The  best  thing  to  do  if  you 
are  going  to  these  countries,  is  to  have  your 
system  rendered  immune  to  the  typhoid 
bacillus,  by  having  your  family  physician  give 
you  the  anti-typhoid  vaccination,  such  as  is 
used  in  the  American  army  and  navy.  There 
is  but  little  inconvenience  attending  its  admin- 
istration and  you  can  rest  assured  that  after 
taking  the  treatment  you  will  not  contract 


370    SELLING  LATIN  AMERICA 

typhoid  fever.  Drink  bottled  mineral  water 
when  possible.  Its  purity  is  certain  to  elim- 
inate tendencies  to  either  stomachic  or  intes- 
tinal troubles. 

Pineapples,  berries,  melons  or  green  un- 
cooked vegetables  such  as  radishes,  cucumbers, 
onions,  water-cress,  lettuce,  salad  and  the  like 
should  be  avoided  for  the  same  reasons. 
Truck  gardens  wherein  they  are  grown  mostly 
use  dirty  water  for  irrigation  purposes.  Even 
the  native  is  aware  of  this  practice  among 
many  gardeners  and  I  recall  one  man  whose 
farm  on  the  outskirts  of  a  large  South  Ameri- 
can city  bears  this  announcement: — 

"The  vegetables  from  this  place  are  not 
irrigated  with  water  from  the  sewers." 

Cholera,  a  rare  visitor  to  these  lands,  need 
not  be  feared,  if  you  are  careful  in  your  diet 
and  drinking  water.  Green  vegetables,  ber- 
ries, melons,  and  fruits  should  be  avoided  in 
the  event  of  an  epidemic  and  only  cooked  veg- 
etables eaten. 

There  is  much  small-pox,  especially  in  com- 


HEALTH  PRECAUTIONS       371 

munities  where  there  is  a  large  percentage  of 
Indian  population,  but  this  need  not  be  a  cause 
for  worry  if  one  is  vaccinated.  A  popular 
South  American  hotel,  having  had  many  cases 
of  this  disease  among  its  patrons,  has  hanging 
in  each  room  this  sign: — 

''Rooms  disinfected  when  guests  leave," 

in  order  to  inspire  confidence  in  its  new  clients. 
This  sign  might  have  as  a  companion,  another 
one  displayed  in  a  leading  Latin  American 
hotel,  reading: — 

"Guests  are  requested  not  to  spit 
through  the  mosquito  netting." 

Yellow  fever  always  exists  in  many  of  the 
towns  of  Ecuador,  Colombia,  Venezuela, 
Brazil  and  most  of  the  Mexican  and  Central 
American  ports.  It  is  due  to  the  bite  of  a 
certain  species  of  mosquito.  By  observing 
precautions,  such  as  sleeping  under  a  net  and 
staying  away  from  districts  known  to  breed 
these  insects,  the  chances  for  contracting  this 
disease  are  materially  minimized. 

That  bubonic  plague  is  present  in  many  lo- 


372     SELLING  LATIN  AMERICA 

calities  cannot  be  denied.  Ecuador,  Vene- 
zuela, Peru  and  Brazil  have  this  disease  more 
than  any  other  countries  of  South  America. 
It  is  caused  by  the  bite  of  a  specific  flea. 
Daily  baths  have  a  tendency  to  wash  away  the 
germs  deposited  by  this  insect. 

For  the  purpose  of  keeping  away  fleas, 
mosquitoes  and  other  pests  it  is  well  to  apply 
daily  to  the  exposed  portions  of  the  body  a 
solution  of  equal  parts  of  spirits  of  camphor 
and  oil  of  citronella,  a  pint  bottle  of  which 
should  form  part  of  one's  traveling  kit. 

Leprosy  need  not  be  feared.  My  experi- 
ence of  several  years  in  one  of  the  largest  lep- 
rosy hospitals  in  the  world,  in  a  country  with 
many  lepers  among  its  inhabitants  warrants 
me  in  saying  positively  that  the  probabilities 
of  a  temporary  resident  contracting  this  dis- 
order are  almost  nil. 

It  is  a  wise  precaution,  for  obvious  reasons, 
when  travelling  in  remote  districts  to  carry 
your  own  pillow,  sheets  and  bed-clothes,  a 
hammock  being  preferable  to  a  bed  because 
more  sanitary  and  easily  conveyed. 


HEALTH  PRECAUTIONS       373 

Oranges,  bananas,  limes  and  the  many  other 
delicious  tropical  fruits  need  not  be  feared. 
You  will  meet  persons  who  will  warn  you 
against  them,  but  they  do  no  harm  when  eaten 
in  moderation. 

Whiskey,  wines  and  beer,  especially  In  the 
warm  climates  are  to  be  eschewed.  They  heat 
the  blood  and  are  over-stimulating.  Every 
doctor  will  tell  you  that  the  possibilities  of 
recovery  from  disease  are  always  against  the 
person  who  uses  alcohol,  and  nowhere  in  the 
world  is  the  truth  of  this  more  exemplified 
than  in  Latin  America.  In  one  hospital  of 
which  I  was  in  charge  in  one  of  these  lands, 
out  of  47  cases  of  yellow  fever,  among  for- 
eigners, during  an  epidemic,  44  succumbed. 
Each  man  who  died  was  an  extreme  user  of 
alcohol  in  some  form.  Of  the  three  recov- 
eries one  man  w^as  a  teetotaler,  the  other  two 
being  occasional  drinkers. 

The  old  doctor's  advice  to  keep  your  head 
cool,  your  feet  warm  and  your  bowels  normal 
in  order  to  avoid  sickness  is  as  appropriate 
for  Latin  America  as  for  anywhere  else. 


374    SELLING  LATIN  AMERICA 

A  small  medical  case  containing  calomel, 
quinine,  soda-mint  tablets,  peroxide  of  hydro- 
gen, a  bandage,  some  aseptic  gauze,  and  a 
packet  of  absorbent  cotton  is  all  that  is  needed 
for  a  trip.  Symptoms  of  any  disorder  should 
not  be  ignored  or  made  light  of.  If  they 
persist  be  sure  to  call  in  the  very  best  physi- 
cian available. 


APPENDIX 


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APPENDIX 


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APPENDIX 


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APPENDIX 


381 


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382 


APPENDIX 


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Pi 


APPENDIX 


383 


10  00  r-  00  M  o> 

i-i  o  o  00  o  •* 

00  !>  ■*  10  CO  t- 

cTio  05  CO  c<j  "* 

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384 


APPENDIX 


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385 


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APPENDIX 


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APPENDIX 


395 


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APPENDIX 


397 


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INDEX 


INDEX 


Acre  Territory,  13 

Advertising,  331 

Advertising     medicines,     332- 
333-335-336-337-338 

Advertising  rates,  338 

Africa,  13,  176 

Alcoholic     drinks      in     Latin 
America,  253-373 

Almagro,  de,  Diego,  67 

Alpaca,  88 

American  attitude  toward  in- 
vestments, 358 

American     Banks     in     Latin 
America,  290-298 

American  loans,  363 

Angostura  bitters,  130 

Anguilla,  206 

Antigua,  206,  209 

Anti-typhoid  vaccination,   369 

Appendix,  375 

Appointments  in  Latin  Amer- 
ica, 252 

Argentine,  10,  13,  31;  discov- 
eries of,  31;  history,  32; 
early  government,  31; 
present  government,  32- 
33 ;  wars  with  England, 
32;  area,  33;  Patagonia, 
treaty  with  Chile,  33; 
boundary,  34;  population, 
34;  immigration,  35;  ty- 
pography, 35;  climate, 
36;  crops,  36,  37,  38; 
seasons  reversed,  38;  but- 

401 


ter  and  cheese,  38;  flour, 
38;  animal  products,  39; 
number  of  cattle,  39;  min- 
erals, 40;  woods,  40;  peat, 
40;  petroleum,  40;  rail- 
ways, 41-42 ;  factories,  41 ; 
steamships,  43;  docks,  44; 
British  investments,  45 ; 
German  investments,  45; 
daily  papers,  45;  money, 
46;  travellers'  tax,  46; 
cities,  47;  exports,  47;  im- 
ports, 48,  375-376-377-378, 
219;  illiteracy,  331,  356 

Asphalt,  133,  207 

Austria-Hungary,   3-5-10 

Ayolas,  de,  Juan,  57 

Alvaredo,  Pedro,  139 

Bahamas,  206,  207,  210 

Ballata,  132,  194,  196,  197 

Bananas,  120-148-149,  172,  195, 
196,  208,  364,  365 

Banking,  West  Indies,  174, 
195,  206 

Barbados,  205,  207,  209 

Barbuda,   206 

Belgium,  5 

Bermuda,  206,  210 

Bills  on  London,  289,  291 

Bismuth,  86,  87,  99 

Bolivia,  13,  32;  area,  79;  cli- 
mate, 80;  population,  82; 
railways,     83 ;     minerals, 


402 


INDEX 


86;  forests,  87;  currency, 
88;  drugs,  87;  travelers' 
tax,  89 ;  cities,  89 ;  ex- 
ports, 88-379-380;  imports, 

88-379  ^ 
Bolivar   (Simon),  80,  106,  114. 

Braden  Copper  Co.,  73 

British  capital  invested,  289 

Brazil,       192-215;       illiteracy, 

332;  imports,  380-381-382- 

383-384 
Brazil,  6,  7,  10;  area,  13; 
boundaries,  13;  popula- 
tion, 14;  discoverer,  14; 
history,  15;  language, 
14;  early  government, 
15;  present  government, 
16;  climate,  17;  geogra- 
phy, 17;  coast,  17;  ports, 
18;  rivers,  18,  19;  prod- 
ucts, 19 ;  manufactures, 
21;  mines,  22;  railways, 
24,  29;  hotels,  24;  money, 
24;  imports,  25,  26;  ex- 
ports, 25,  26;  preferential 
duty,  25;  steamships,  27; 
cities,  29;  travellers'  tax, 
30 

British    Guiana,    13-15,     191; 
early  history,  192;  topog- 
raphy,   192;    temperature, 
193;    area,    193;    exports 
and     imports,     194,     195 ; 
travelers'  tax,  194;  bank- 
^  ing,  195 
British  West  Indies,  205 
Bubonic  plague,  254-371 

Cabot,  Sebastian,  31-57 
Cabral,  Pedro  Alvarez,  14 
Caicos  Islands,  205 


Canadian   banks,   195-206,  299 
Canal    Zone,     143 ;     currency, 

152 
Carib  Indians,  168 
Castro,  Cipriano,  9 
Cattle  raising,  172,  179 
Caymans,  205 
Central  American  Federation, 

139 
Chicle  (gum)  148,  149,  163 
Chile,  13,  32;  discoverers,  67; 
Indians  of,  67 ;  early  his- 
tory, 67;  government,  68; 
area,    68;    coast    of,    68; 
mountains,     68 ;     climate, 
68;    population,    69;    for- 
eign   colonies,     69 ;     rail- 
ways,     69;      rivers,      70; 
ports,  71;  nitrate,  71,  72; 
iodine,     72 ;     copper,    73 ; 
coal,     74;     minerals,     74; 
crops,  74;  wine,  74;  cattle, 
75  ;  forests,  75  ;  industries, 
75  ;  fruits,  75  ;  exports,  76 ; 
imports,    76,    77;    money, 
76;   business  in  hands  of, 
77;     travellers'    tax,     77; 
cities,   78;    how  to   reach, 
78-215,      219;      illiteracy, 
331,  356;  imports,  384-385 
Clothes    for    Latin     America, 

260 
Cocaine,  87-101-102 
Cocoa,  20,  132,  179,  207,  364 
Coffee,    19,   88,    no,    119,    131, 
135,  149,  183,  188,  196,  208, 

Colombia,  13;  discoverer,  114; 
early  history,  114;  area, 
115;  topography,  115;  cli- 
mate, 116;  population, 
116;   present   government. 


INDEX 


403 


117;  railroads,  117;  Bo- 
gota, 118;  travel,  118; 
rivers,  119;  agriculture, 
119;  coffee,  119;  bana- 
nas, 120;  Panama  hats, 
120;  tagua  nuts,  120; 
cattle,  120;  hides,  121; 
mines,  121,  122;  emeralds, 
121;  money,  122;  imports, 
123,  386;  exports,  123; 
travellers'  tax,  124;  cities, 
124;  travel,  124;  steam- 
ships, 125;  ports,  125,  219- 

364 
Columbus,     Christopher,     114- 

126-139,  168,  176,  186 
Commercial  agencies,  306 
Consuls     for     United     States, 

225,  259 
Consular  invoice,  323 
Copper,  63,   110,  133 
Copy,  advertising,  339,  34° 

position  of,  341 
Cortes,  Hernando,  138,  156 
Correspondence        in        Latm 

America,    261 
Costa  Rica,  early  history,  138; 
present   government,    140; 
area  and  population,  142; 
topography,      144;      rail- 
ways,     145 ;      agriculture, 
147;  forests,  148;  bananas, 
149;    coffee,    149;    mines, 
149;     exports,     149;     im- 
ports,  15c,   151;  currency, 
152,    153;   travellers'    tax, 
153;    cities,    154;    steam- 
ships,  154,  364 
Cuba,   I,  2,  5;   area,   169;  to- 
pography and  population, 
169,     170;    cliniate,     170; 
government,      170;      rail- 


ways and  rivers,  171;  su- 
gar, 171;  fruits,  172; 
mines,  172;  exports,  173; 
imports,  173 1  currency, 
174;  banks,  174;  travel- 
ers' tax,  174;  principal 
cities,  175;  rail  and 
steamship  connections,  169, 
175;  illiteracy,  331,  364 

Curacao,  area,  200;  popula- 
tion, 200;  currency,  201; 
banking,  201 ;  exports,  201 ; 
smuggling,  201;  imports, 
202;  steamer  connections, 
202 

Custom  House  rulings,  268- 
269,  270 

Customs  of  Latin  Americans, 
248,  249 

Customs  and  Tariffs,  266 

Cuzco   (city),  104 

Denmark,   199 

Devils'  Island,  197 

Diaz  (Porfirio),  158 

Disease  in  Latin  America, 
109  -  253  -254-264-369-370- 
371-372 

Dominica,  206,  209,  210 

Drinking  Water  in  Latin 
America,  254-368-369 

Dutch  Guiana,  13-15.  191; 
population,  196;  trade 
conditions,  196 ;  exports 
and  imports,  196;  cur- 
rency, 197;  steamship  con- 
nections, 197 

Eating  fruit,  373 

Ecuador,     13;     early    history, 

106 ;      government,      107 ; 

area,    107;    climate,    107; 


404 


INDEX 


area  and  topography,  108 ; 
census,  108 ;  railways, 
109 ;  revolutions,  109 ;  dis- 
eases, 109;  natural  re- 
sources, 110;  currency, 
110;  exports,  112;  travel- 
ers' tax,  112;  imports, 
112;  principal  cities,  112; 
how  reached,  113;  im- 
ports, 386 

Electro   cuts,   342 

England,    2-3-5-123,    174,    183, 
184,  199,  208,  209,  210,  220 

English  investments,  355 

Europe,  3-4-6-7-12 

European   attitude  toward  in- 
vestors, 360 

European    Possessions    in    the 
West  Indies,  199,  205 

Exchange,  basis  of,  300-301 

Exchange  buying,  291 

Exports,  Bolivia,  379-380 

Export  duties,  272 

Federal  Reserve  Act,   309 
Finance  and  Credits,  288 
Financing    improvements,    292 
Foreign     commerce     statistics, 

2-5-6 
France,  5-13-47,  176,  183,  184, 

197,    198,    199,    204,    205, 

208,  220,  222 
French  banks,  290 
French    Guiana,     13-15,     191; 

extent      and      population, 

197;  exports,  197;  imports, 

198;    travelers'    tax,    198; 

language,  198 

Galapagos   Islands,    107-112 
Germany,   3-5-13-47-65-77-122- 


183,    184,    208,    215,    218, 
219,  220 

German  banks,  289 

German    investments,    355 

Gold  exchange  standard  coun- 
tries, 300 

Gold  standard  countries,  300 

Grenadines,  206 

Granada,  206,  209 

Guadeloupe  (French  posses- 
sion), 204,  205 

Guano,  99-102-134 

Guatemala,  early  history,  139; 
present  government,  140; 
area  and  population,  140; 
topography,  144;  rail- 
ways, 145 ;  agriculture, 
147;  forests,  148;  bananas, 
148  ;  coffee,  149 ;  exports, 
149;  imports,  150,  151; 
currency,  152,  153;  travel- 
lers' tax,  153;  cities,  153; 
steamships,  154;  illiteracy, 

332 
Guyara  Falls,  61 

Haiti,  early  history,  geography 
and     climate,     182,     183; 
roads,  183;  monetary  sys- 
tem,   184;    travelers'    tax, 
185;  principal  cities,  185; 
steamships,  185 
Health  precautions,  253-368 
Henequen   (rope),  163,  172 
Holland,   15,    192,   199    (West 

Indian  possessions),  200 
Honduras  (British),  early  his- 
tory, 139;  present  govern- 
ment, 140;  area  and  pop- 
ulation, 143;  topography, 
144;  agriculture,  147; 
forests,  148;  bananas,  149; 


INDEX 


405 


exports,  149;  imports,  150, 
151;  currency,  152,  153; 
travellers'  tax,  153;  cities, 
153;  steamships,  154 
Honduras  (Spanish),  early- 
history,  139;  present  gov- 
ernment, 140;  area  and 
population,  141 ;  topogra- 
phy, 144;  railways,  145; 
agriculture,  147 ;  forests, 
148;  bananas,  149;  mines, 
149 ;  exports,  149 ;  im- 
ports, 150,  151;  currency, 
152,  153;  travellers'  tax, 
153;  cities,  154;  steam- 
ships, 154 
Hotels,  Latin  America,  250 
Huerta    (Victoriano),   158 

Illiteracy,  331 

Imports,    Argentine,     375-376- 
377-378 

Brazil,    380-381-382-383-384 

Bolivia,   379 

Chile,  384 

Colombia,  386 

Ecuador,  386 

Paraguay,  387 

Peru,   103-388-389-390 

Uruguay,  391-392 

Venezuela,  393-394-395 
Inconvertible    paper    standard 

countries,  300 
Intestinal  diseases,  370 
Irala,  Domingo,  57 
Island  of  Margarita,  134,  136 
Isle  of  Pines,  169 
Italian  banks,  290 
Iturbide,  Augustin,  139,  157 
Ivory  nuts  (see  tagua  nuts) 

Jamaica,  206,  207,  208,  209 


Josephine,  Empress  of  France, 
204 

Lake  Titicaca,  83,  85,  96,  98 
Latin  America,  2,  4,  5,  6,  8,  9, 

II 
La  Paz,  83,  84,  89 
Leeward  Islands,  205,  207 
Leprosy,  372 

Letters  of  Credit,  265,  303,  304 
Letters  of  Introduction,  258 
Literature  for  Latin  America, 

263 
London  and  River  Plate  Bank, 

288 
Long  credits,  309 
Lopez,  Carlos  Antonio,  57-58 

Madero   (Francisco),  158 
Mail  In  Latin  America,  264 
Marie    Galante    (French   pos- 
session), 205 
Martinique  (French),  204,  205 
Medicines  for  Latin  America, 

^  372-374 
Melggs    (Henry),  97 

Mendoza,  de,  Pedro,  31 

Merchant  Marine,  Germany, 
218 

Merchants'  tax  in  Latin 
America,  257 

Methods  of  Doing  Business, 
224,  227 

Mexico,  early  history,  156, 
157;  revolutions,  158; 
form  of  government,  159; 
area,  160;  topography, 
160;  population,  161; 
railways,  161;  mineral 
wealth,  162,  163;  forests, 
163;  exports,  164;  im- 
ports,  165;   monetary  sys- 


4o6 


INDEX 


tem,  165;  commercial  tax, 
165;     travel     and     hotels, 
165;  principal  cities,  166; 
railroads,  166;  steamships, 
167,  219;   illiteracy,  331 
Monetary  systems,  299 
Montserrat,  206,  209,  210 
Mountain   sickness,   81 

Nanduti  lace,  62 

Napoleon  III,  158 

Napoleonic  Wars,  2 

National  Cash  Register  Co., 
231 

National  City  Bank,  308 

Nevis,  206 

New  Granada,  114 

Nicaragua,  early  history,  138; 
present  government,  140; 
area  and  population,  142; 
topography,  144;  rail- 
ways, 146 ;  agriculture, 
147;  forests,  148;  bananas, 
149;  coffee,  149;  mines, 
149  ;  exports,  149 ;  imports, 
150,  151;  currency,  152, 
153;  travellers'  tax,  153; 
cities,      154;      steamships, 

154 

Ojeda,  de,  Alonso,  114 
Order  blanks,  259 

Packing  instructions,  316,  317- 

319 
Packing  and  shipping,  311 

Packing  weights,  315,  316 
Panama  (Republic  of),  early 
history,  139;  present  gov- 
ernment, 140;  area  and 
population,  142 ;  topogra- 
phy,   144;    railways,    146; 


agriculture,  147 ;  forests, 
148;  bananas,  149;  mines, 
149;  exports,  149;  im- 
ports, 150,  151;  currency, 
152,  153;  travellers'  tax, 
153;  cities,  154;  steam- 
ships, 154 

Panama  hats,  loi,  102,  iii, 
120,  123,  201 

Paraguay,  13,  32;  discoverers 
and  early  history,  57; 
present  government,  58 ; 
population,  58-60;  area, 
59;  climate,  59;  roads, 
60;  railways,  60;  soil,  61; 
rivers,  61 ;  yerba  mate, 
62;  quebracho,  63;  min- 
erals, 63 ;  woods,  63 ; 
cattle,  63;  money,  64; 
credits,  64;  exports,  64- 
387;  imports,  65,  387; 
travellers'  tax,  65 ;  cities, 
65 ;  shipping  goods,  66 

Passports,  265 

Pearls,   134 

Perry,  Commodore,  213 

Peru,  13;  early  history,  91; 
Chumus,  91 ;  war  with 
Chile,  92;  government, 
93;  area,  93;  population, 
94,  95;  railways,  96; 
mines,  99;  petroleum, 
100;  exports,  100,  102; 
Panama  hats,  loi ;  cur- 
rency, loi ;  travelers'  tax, 
103;  principal  cities,  104; 
exports,  103-388-389-390; 
imports,  103 

Peruvian   Balsam,    148 

Peruvian     Corporation,     Ltd., 

96,  97 
Petitgrain,  oil  of,  62 


INDEX 


407 


Petroleum,        23-40-53-99-100- 

103-110-132-133 

Philippines,  1-2 

Pizarro,  67,  79,  9I1  106 

Plagiarism,  343 

Population,  5,  lo,  14 

Porto  Rico,  I,  2,  5 ;  early  his- 
tory, 186;  climate,  187; 
roads,  187;  government, 
187;  exports,  188;  princi- 
pal cities,  189;  steamship 
connections,   190,  204 

Ports  in  Latin  America,  313 

Portugal,   223 

Postage  to  Latin  America,  263, 
264 

Power  of  Attorney,  279 

Preferential  duty,  25,  26,  208- 
210 

Quebracho,  40,  41,  63,  64 
Quinine,  102 

Raleigh   (Sir  Walter),  192 
Ratings  of  merchants,   305 
Reciprocal    opportunities,    347, 
348,    350,    351.    352»    353» 

354  ^ 
Reciprocity,  345 

Redonda,  206 

Registration   of  Trade   Mark, 

279 
Religious  Processions,  250 
Rubber,   20,    87,   96,    11 1,    120, 

183 

St.  Barts  (French  possession), 
205 

St.  Croix  (Danish  West  In- 
dies), 202,  203 

St.  John  (Danish  West  In- 
dies), 202 


St.  Kitts,  206,  209 
St.  Lucia,  206,  210 
St.  Martins,  205 
St.  Thomas  (Danish  West  In- 
dies), 202,  203,  204 
St.  Vincent,  206 
Salesmen  and   Customer,  242 
Salesmen's  requirement,  242 
Sample  cases  for  Latin  Amer- 
ica, 260 
Santo  Domingo,  5;  early  his- 
tory, 176,  177;  revolutions, 
177;    present   government, 
177,  178;  area,  178;  rail- 
ways,   179;    exports,    179; 
imports,       179;       moneys, 
180;  American  Bank,  180; 
travelers*  tax,   180;   prin- 
cipal   cities,    180;    steam- 
ships,  180 
San    Salvador,    early    history, 
139;    present   government, 
140;  area  and  population, 
141;      topography,       144; 
railways,     145 ;      agricul- 
ture,    147;     forests,     148; 
coflFee,    149;    mines,    149; 
exports,       149  5       imports, 
150,    151;    currency,    152, 
153;   travellers'  tax,   153; 
cities,  154;  steamships,  154 
Shipping  instructions,  319,  320, 

321 
Silver  standard  countries,  300 
Singer  Sewing  Mch.  Co.,  230 
"  Sirroche "     (mountain     sick- 
ness), 81 
Sisal   (see  Henequen),  163 
Solis,  de,  Juan  Diaz,  31,  49 
Souza,  de,  Thome,  15 
Spain,  I,  2,  168,  177,  192,  223 
Spanish  banks,  290 


4o8 


INDEX 


Standard  Oil  Co.,  230 

Subway,  356 

Sugar,  19-57-62-102,  no,  171, 
179,  188,  194,  195,  196, 
203,  207,  208,  209,  210 

Swiss  banks,  290 

Tagua    (nuts),    no,   in,   120, 

123,  353 
Tannin,   41 

Thefts  in  Custom  House,  270, 

328 

Theft  en  route,  328 

Tin,   86,   87 

Tobacco,    19,   53,   62,   64,    171, 

179,   188 
Tobago,  205 
Tonka   (bean),  132,  135 
Torquemada,  268 
Trade  commissions,  214 
Trade  development,  212 
Trade  Marks,  276 
Travel  in  Latin  America,  251 
Travelers'  Tax,  174,  i8o,  189, 

^  194,  245 
Trinidad,  205,  206,  207 
Tungsten,  99 

United  Fruit  Co.,  121,  364,  365 
United  States  attitude  toward 
Latin  America,  274;  indif- 
ference toward  invest- 
ments, 359-362 
Uruguay,  13;  discoverer,  49; 
early  history,  49;  war 
with  Brazil,  50;  govern- 
ment,   50;    area,    50;    cli- 


mate, 51;  population,  51; 
colonists,  51;  rivers,  52; 
ports,  52;  railroads,  52; 
agriculture,  53;  minerals, 
53  ;  forest  lands,  53  ;  graz- 
ing lands,  53;  packing 
houses,  53;  cattle  census, 
54;  money,  54;  exports, 
55;  imports,  55,  391-392; 
travellers'  tax,  55 ;  cities, 
56;  steamships,  56 

Vacuum  Oil  Co.,  230 
Valdivia,  Pedro,  67 
Vanadium,  99-102 
Velasquez   (Diego),  i68 
Venezuela,     8-13;     early    his- 
tory, 126;  boundaries,  127; 
government,  128 ;   popula- 
tion, 129;  rivers,  129,  130; 
railroads,  131;  asphalt  de- 
posits,   132;    cattle,    133; 
minerals,       133;       money, 
134;     exports,     134;     im- 
ports,       135;        principal 
cities,      135;      commercial 
fees,  135;  steamships,  136; 
192,    200,    219,    220;    im- 
ports,   393-394-395 
Virgin  Islands,  206 

Windward  Islands,  206,  207 
Wolfrain,   23-40-88 
Woods,  cabinet  and  dye,  21 

Yellow  fever,  254-371-373 
Yerba  mate,  19,  62,  64 


THE  INDISPENSABLE  BOOK 


[WELFARE  SERIES] 

THE  HELD  OF  SOCIAL  SERVICE 

Edited  by  PHILIP  DAVIS 
in  collaboration  with  Maida  Herman 

The  main  object  of  the  book  is  to  answer  the  universal  question : 
"  JUST  WHAT  CAN  I  DO  IN  SOCIAL  WORK 
AND     HOW    SHALL    I    GO    ABOUT    IT?" 

For  such  inquiries,  it  is  an  indispensable  text  book.  The  table  of  contents : 

Introduction 

By  Philip  Davis,  Head  Worker,  Civic  Service  House,  Boston 

PART  I 

Background  in  Social  Work 

I     The  Great  Watchwords  of  Social  Work 

By  Robert  A.  Woods,    Head  Worker,   South  End  House, 
Boston. 

II     The  Community  and  The  Citizen 

By  Jeffrey  R.  Brackett,  Director  School  for  Social  Work- 
ers, Boston 

PART  U 

Community    Problems 

HI     The  Housing  Problem 

By  Elmer  S.  Forbes,    Chairman  Housing  Committee  Mass. 
Civic  League 

IV     Fire  Prevention 

By  Charles  H.  Cole,    Adjutant  General  of  Mass.;    formerly 
Fire  Commissioner  of  Boston 

V     Health  and  Medical  Social  Service 

By  Dr.  Richard  C.  Cabot.    Chief   of  West   Medical   Staff. 
Mass.  General  Hospital,  Boston 

VI     Playgrounds 

By  Joseph  Lee.  President  National  Playground  and  Recrea- 
tion Association  or  America 

VII      Recreation 

By  Ernst  Hermann,  Supt.  of  Playgrounds,  Newton,  Mass. 

VIII      The  New  Immigration:   A  Problem  in  Education 

By  Freuik  E.  Spaulding,  Supt.  of  Schools,  Minneapolis.  Minn.; 
Member  of  Immigration  Commission  of  Mass.,  1913 

IX     The  New  Immigration:  A  Programme 

By  George  W.  Tupper,    ImmigratioQ  Sec'y  Y.  M.  C.  A. 
Mass.  and  R.  I. 

X     Industrial  Problems 

By  Robert  G.  Valentine,  Industrial  Counselor 


THE   FIELD    OF  SOCIAL   SERVICE 

-(rnNTiNiiFn\  — 


PART  UI 

The  Community  and  the  Child 

XI    The  Volunteer  and  Child  Labor  Reform 

By  Richard  K.  Conemt,  Sec'y  Mass.  Child  Labor  Committee 

XII    The  School  and  the  Community 

By  Frank  B.  Dyer,  Supt.  of  Schools,  Boston 

XIII  The  Vocational  Movement  in  Education:  Its  Social 

Significance 

By  Meyer  Bloomfield,  Director  Vocation  Bureau,  Boston 

XIV  Juvenile  Delinquency 

By  Harvey  H.  Bedcer,  Justice  Boston  Juvenile  Court 

PART  IV 

Social  Agencies 

XV    Public  and  Private  Relief 

By  Wm.  H.  Pesu-,  General  Agent  Boston  Provident  Association 

XVI    Social  Settlement  Work 

By  Mrs.  Eva  W.  White,  Head  Worker.  Elizabeth  Peabody 
House,  Boston 

XVII    Child  Caring 

By  J.  Prentice  Murphy,    General   Sec'y  Boston  Children's 
Aid  Society 

XVIII    Organization  of  Charity 

By  Lee  K.  Frankel,  Vice-President  Metropolitan  Life  Insur- 
ance Company 

XIX    The  Church  and  Social  Service 

By  Rev.  Charles  F.  Dole,   President  Twentieth  Century  Club 

XX    Religion  and  Social  Service 

By  Harry  Levi,  Rabbi  Temple  Adalh  Israel 

Supplement  I 

Salaried  Positions  in  Social  Work 
By  a  Group  of  Elxperts 

Supplement  II 

Opportunities  for  Training  in  Social  Work 
By  Maida  Herman 

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HUMAN     ::     BOOK 


[WEU='ARE  SERIES] 

CONSUMPTION 

WHAT  IT  IS  AND  WHAT 
TO  DO  ABOUT  IT 

BY 

JOHN  B.  HAWES,  2d,  M.D. 

Instructor  in  Medicine  Harvard  Medical  School.   Director  Tuberculosi. 

Department.  Assistant  Visiting  Phys.c.an  Massachusetto 

General  Hospital.  Secretary  Massachusetts 

Tuberculosis  Commission 

A  SUCCINCT  account  of  tuberculosis,  particularly 
pulmonary  tuberculosis  or  consumption,  with 
special  consideration  of  the  fact  that  it  is  first  of  all  a 
human  problem.  The  author  is  an  eminent  speciahst  m 
the  disease  and  holds  various  important  posts  in  connection 
with  its  treatment,  such  as  director  of  the  tuberculosis 
department  of  the  Massachusetts  General  Hospital,  Secre- 
tary of  the  Trustees  of  the  Massachusetts  Hospital  for 
Consumptives,  Secretary  of  the  tuberculosis  section  of  the 

Massachusetts  Medical  Society,  etc.  His  book  is  designed 
especially  for  laymen,  and  will  prove  of  the  greatest  value 
to  everyone  who  wants  to  know  the  very  latest  thought  on 

the  practical  as  well  as  the  medical  treatment  of  con- 

sumption. 

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[WELPARE  SERIES] 

STREET-LAND 

ITS  LITTLE  PEOPLE  AND  BIG  PROBLEMS 

By  PHILIP  DAVIS 

assisted  by  Grace  Kroll 

Home 


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"VY/HAT  shall  we  do  with  the  children  whose  only  place  for 
^  play  is  the  city  street  ?  Mr.  Davis,  who  is  Director  of 
the  Civic  Service  House,  Boston,  was  for  five  years  Supervisor 
of  Licensed  Minors  of  the  Boston  School  Board.  He  has 
observed  closely,  conscientiously  and  sympathetically,  and 
handles  this  vital  subject  from  every  standpoint.  The  streets 
and  their  subtle  relations  to  home,  work  and  play,  school  and 
health,  vice  and  virtue,  and  many  other  important  phases 
of  child-life  in  Street-Land  are  dealt  with  carefully  and 
concretely. 

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